EODB Indonesia PDF

Doing Business 2020 Indonesia
Economy Profile
Indonesia
Page 1
Economy Profile of Indonesia

Doing Business 2020 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety
mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the
transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as postfiling
processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for
insolvency
Employing workers Flexibility in employment regulation and redundancy cost
Page 2
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and
regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life
cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for
starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across
borders, enforcing contracts and resolving insolvency. Doing Business also measures features of employing workers. Although Doing Business does not present rankings
of economies on the employing workers indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages
economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector
researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational studies, which exhaustively cover business regulation and reform in different cities and regions within a nation.
These studies provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected
cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked.
The first Doing Business study, published in 2003, covered 5 indicator sets and 133 economies. This year’s study covers 11 indicator sets and 190 economies. Most
indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013
(Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data
for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from
feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the
regulatory environment for business around the world.
To learn more about Doing Business please visit doingbusiness.org
Page 3
Ease of Doing Business in DB RANK DB SCORE

Region East Asia & Pacific
Indonesia
Income Category Lower middle income
73
Population 267,663,435 69.6
City Covered Jakarta, Surabaya
Rankings on Doing Business topics - Indonesia
33 37 38
48
81
110 106
116
140 139
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Topic Scores
81.2 66.8 87.3 60.0 70.0 70.0 75.8 67.5 49.1 68.1
Starting a Business (rank) 140 Getting Credit (rank) 48 Trading across Borders (rank) 116
Score of starting a business (0-100) 81.2 Score of getting credit (0-100) 70.0 Score of trading across borders (0-100) 67.5
Procedures (number) 11 Strength of legal rights index (0-12) 6 Time to export
Time (days) 13 Depth of credit information index (0-8) 8 Documentary compliance (hours) 61
Cost (number) 5.7 Credit registry coverage (% of adults) 30.9 Border compliance (hours) 56
Paid-in min. capital (% of income per capita) 0.0 Credit bureau coverage (% of adults) 40.4 Cost to export
Documentary compliance (USD) 139
Dealing with Construction Permits (rank) 110 Protecting Minority Investors (rank) 37 Border compliance (USD) 211
Score of dealing with construction permits (0-100) 66.8 Score of protecting minority investors (0-100) 70.0 Time to export
Procedures (number) 18 Extent of disclosure index (0-10) 10.0 Documentary compliance (hours) 106
Time (days) 200 Extent of director liability index (0-10) 5.0 Border compliance (hours) 99
Cost (% of warehouse value) 4.5 Ease of shareholder suits index (0-10) 2.0 Cost to export
Building quality control index (0-15) 13.8 Extent of shareholder rights index (0-6) 5.0 Documentary compliance (USD) 164
Extent of ownership and control index (0-7) 6.0 Border compliance (USD) 383
Getting Electricity (rank) 33 Extent of corporate transparency index (0-7) 7.0
Score of getting electricity (0-100) 87.3 Enforcing Contracts (rank) 139
Procedures (number) 4 Paying Taxes (rank) 81 Score of enforcing contracts (0-100) 49.1
Time (days) 32 Score of paying taxes (0-100) 75.8 Time (days) 403
Cost (% of income per capita) 233.8 Payments (number per year) 26 Cost (% of claim value) 70.3
Reliability of supply and transparency of tariff index (0-8) 6 Time (hours per year) 191 Quality of judicial processes index (0-18) 8.9
Total tax and contribution rate (% of profit) 30.1
Registering Property (rank) 106 Postfiling index (0-100) 68.8 Resolving Insolvency (rank) 38
Score of registering property (0-100) 60.0 Score of resolving insolvency (0-100) 68.1
Procedures (number) 6 Recovery rate (cents on the dollar) 65.5
Time (days) 31 Time (years) 1.1
Cost (% of property value) 8.3 Cost (% of estate) 21.6
Quality of the land administration index (0-30) 15.5 Outcome (0 as piecemeal sale and 1 as going 1
concern)
Strength of insolvency framework index (0-16) 10.5
Page 4
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and
formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to
10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of
operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one
company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their
scores for starting a business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate a company To make the data comparable across economies, several assumptions about the business and the
(number) procedures are used. It is assumed that any required information is readily available and that the
entrepreneur will pay no bribes.
• Preregistration (for example, name verification or reservation,
notarization)
The business:
• Registration in the economy’s largest business city -Is a limited liability company (or its legal equivalent). If there is more than one type of limited
• Postregistration (for example, social security registration, liability company in the economy, the limited liability form most common among domestic firms is
company seal) chosen. Information on the most common form is obtained from incorporation lawyers or the
statistical office.
• Obtaining approval from spouse to start a business or to leave
-Operates in the economy’s largest business city. For 11 economies the data are also collected for
the home to register the company
the second largest business city.
• Obtaining any gender specific document for company -Performs general industrial or commercial activities such as the production or sale to the public of
registration and operation or national identification card goods or services. The business does not perform foreign trade activities and does not handle
products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily
Time required to complete each procedure (calendar days)
polluting production processes.
• Does not include time spent gathering information -Does not qualify for investment incentives or any special benefits.
-Is 100% domestically owned.
• Each procedure starts on a separate day (2 procedures cannot -Has five business owners, none of whom is a legal entity. One business owner holds 30% of the
start on the same day)
company shares, two owners have 20% of shares each, and two owners have 15% of shares
• Procedures fully completed online are recorded as ½ day each.
• Procedure is considered completed once final document is -Is managed by one local director.
received -Has between 10 and 50 employees one month after the commencement of operations, all of them
domestic nationals.
• No prior contact with officials -Has start-up capital of 10 times income per capita.
-Has an estimated turnover of at least 100 times income per capita.
Cost required to complete each procedure (% of income per
-Leases the commercial plant or offices and is not a proprietor of real estate.
capita)
-Has an annual lease for the office space equivalent to one income per capita.
• Official costs only, no bribes -Is in an office space of approximately 929 square meters (10,000 square feet).
-Has a company deed that is 10 pages long.
• No professional fees unless services required by law or
commonly used in practice
The owners:
Paid-in minimum capital (% of income per capita)
-Have reached the legal age of majority and are capable of making decisions as an adult. If there
• Funds deposited in a bank or with third party before registration is no legal age of majority, they are assumed to be 30 years old.
or up to 3 months after incorporation -Are in good health and have no criminal record.
-Are married, the marriage is monogamous and registered with the authorities.
-Where the answer differs according to the legal system applicable to the woman or man in
question (as may be the case in economies where there is legal plurality), the answer used will be
the one that applies to the majority of the population.
Page 5
Starting a Business - Jakarta
Standardized Company
Legal form Perseroan Terbatas (PT)
Paid-in minimum capital requirement No minimum
City Covered Jakarta
Indicator Jakarta East Asia & OECD high Best Regulatory

Pacific income Performance
Procedure – Men (number) 11 6.5 4.9 1 (2 Economies)
Time – Men (days) 10 25.6 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 5.7 17.4 3.0 0.0 (2 Economies)
Procedure – Women (number) 11 6.6 4.9 1 (2 Economies)
Time – Women (days) 10 25.7 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 5.7 17.4 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 3.5 7.6 0.0 (120 Economies)
Figure – Starting a Business in Jakarta – Score
41.2 90.5 97.2 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Jakarta and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
94.1: China (Rank: 27)
92.4: Thailand (Rank: 47)
83.3: Malaysia (Rank: 126)
82.2: Jakarta
77.7: Surabaya
71.3: Philippines (Rank: 171)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
the scores for each of the component indicators.
Page 6
Figure – Starting a Business in Jakarta – Procedure, Time and Cost
Time (days) Cost (% of income per capita)

10 4
3.5
Cost (% of income per capita)

8
3
Time (days)
2.5
6
4
1.5
1
2
0.5
0 0
1 2 3 4 5 6 7 8 9 10 * 11
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the
time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures
reflected here, see the summary below.
Page 7
Details – Starting a Business in Jakarta – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Pay fee for obtaining clearance of company name Less than one day IDR 100,000
Agency : Notary (online procedure)
The process of company name clearance must be done through a computerized processing
system, the reservation and clearance is most commonly done in practice by a notary public. The
notary must first pay the fee of IDR 100,000 to obtain clearance for the proposed company name.
The payment is made by the notary at an online platform called yap (https://yap.id/).
2 Obtain clearance for the company's name at the Ministry of Law and Human Rights Less than one day included in procedure 3
To obtain the clearance for company name, the notary inserts a code online when reserving the
company name as proof of payment. The reserved name will be blocked for 60 days. If the
founding shareholders are confident that the same name has not been used by another
Indonesian company, this procedure is not necessary.
The company must not use a name which:

a. has been lawfully used by another company or is similar to the name of another company;
b. contravenes public order and/or decency;
c. is identical or similar to the name of a state agency, government agency, or international
agency, except with their approval;
d. does not conform to the purposes and objectives and business activities of the company, or
only designates the purposes and objectives of the company without having its own name;
e. consists of numbers or a set of figures, a letter or a set of letters that do not form any words; or
f. means a Company, a legal entity, or a civil enterprise (persekutuan perdata).
The Ministry of Law and Human Rights may reject a name application reservation if the requested
name is, among others, the same or resembles similarities to name of other companies.
According to Article 4 of MoLHR Reg. No. 1/2016, an electronic application must be submitted for
the use of the company's name to the Ministry of Law and Human Rights ("Minister of MOLHR")
through Legal Entity Administration System (Sistem Administrasi Badan Hukum, SABH). Such
application shall be performed by filing the Company's Name Application Form which at least
contains of the following information:
a. payment number of the approval of the use of the company's name; and
b. booked name of the company.
The approval of the company's name by the Minister of MOLHR shall be given electronically, as
regulated under MoLHR Reg. No.1/2016, which at least contains of the following information:
a. booking number of the name of the company;
b. name of the company which may be used;
c. date of booking;
d. expiry date; and
e. payment code.
3 Pay the non-tax state revenue (PNBP) fees for legal services Less than one day IDR 500,000 (validation of
Agency : Notary (online procedure) company as legal entity) +
The requirement to pay the non-tax state revenue fee (Penerimaan Negara Bukan Pajak, PNBP) IDR 430,000 (publication)
for legal services in relation to the establishment of a company (PT) is established by Schedule 1
of the Government Regulation No. 45 of 2016. The payment is made by the notary at an online
platform called yap (https://yap.id/).
The cost breakdown is as follows (as determined by Regulation No. 8 of 2018 of the Ministry of
Law and Human Rights of the Republic of Indonesia):
- 500,000 IDR for validation of company as legal entity;
- 430,000 IDR for publication in State Gazette and publication in the Supplement State Gazette.
4 Arrange for a notary to obtain the standard form of the company deed and notarize 1 day see procedure details
company documents
Agency : Notary
The notary must obtain the standard form for the company deed, which the business founders will
complete and review according to the provisions agreed by them. The notary will then notarize the
company documents (notarial deed, also known as the deed of establishment, and articles of
association).
Per Regulation No. 8 of 2018 of the Ministry of Law and Human Rights of the Republic of
Indonesia, the notary fees for preparation and notarization of company documents are:
- IDR 500,000 for companies with a capital of up to IDR 25 million;
- IDR 2 million, for companies with a capital of up to 500 million; and
- IDR 4 million for companies with a capital up to IDR 1 billion.
5 Make a company seal 1 day IDR 30,000

Agency : Seal maker
Even if company stamps are not legally required in Jakarta, companies need to stamp all
applications. Institutions will not receive and approve any documents without the stamp of the
company.
Page 8
6 Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Less than one day included in procedure 6
Agency : Ministry of Law and Human Rights (online procedure)
Based on Articles 9, 10, 29 and 30 Indonesian Company Law No. 40 year 2007, the application for
approval of Ministry of Law and Human Rights (the "Ministry of Law") on establishment of
company can be filed electronically by attaching with the certificate of bank account and a copy of
the relevant bank transmittal advice. The process is as follows:
•The application should be filled at the latest 60 days since the date of establishment deed;
• Since the application has already fulfilled, the Ministry of Law directly electronically stated no
objection on said application. However, if the application is not fulfilled, the Ministry of Law will
directly electronically state his objection on said application;
• in 30 days since the date of no objection by Ministry of Law, the applicant should submit the
original application and supporting documents;
• 14 days after fulfillment of above requirements, Ministry of Law will issue the legalization on the
establishment of the company;
• Data of company which its establishment has been approved by Ministry of Law i.e. name,
domicile, object and purpose, period, Capital Company will be inserted into Company Registry.
• The Ministry of Law will announce the establishment of company in Supplement State Gazette
(TBNRI) within 14 days of the Ministry's Approval Letter.
As of March 2014, the Ministry of Law and Human Rights issues the approval of the deed of
establishment electronically.
7 Apply for the Certificate of Company Domicile 2 days no charge

Agency : Municipality
The business founders must obtain a certificate of company domicile. This certificate is issued by
the head of the village (the Lurah) where the company is located or by the building management if
office space is leased. There is no official fee for this certificate.
8 Apply for the single business number (NIB) 1 day no charge

Agency : One Stop Integrated Service Body of SKI Jakarta Provincial Government - Ministry of
Trade
The permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) and the company
registration certificate (Tanda Daftar Perusahaan, TDP) have been replaced in July 2018 by a
single certificate, the single business number (NIB).
Companies register for the NIB using the new Electronic Integrated Business Licensing Services
(Online Single Submission (OSS) portal) which became operational on 9 July 2018.
9 Register with the Ministry of Manpower 1 day no charge

Agency : Ministry of Manpower
Per Article 6 of the Law No.7 of 1981 concerning Mandatory Labor Affairs Report, the company
shall submit a labor report to the Ministry of Manpower and Transmigration ("Minister of
Manpower") or the appointed officer within a period of no more than 30 days as of the
establishment of the company. Such report shall contain the following information:
a. company identification;
b. manpower relation;
c. manpower protection; and
d. employment opportunity.
The labor report is submitted online via www.wajiblapor.kemnaker.go.id. The ratification of the
registration of the mandatory labor affairs report is performed within a period of 1 working day as
of the receipt of complete application.
Page 9
10 Apply for the Workers Social Security Program (BPJS Ketenagakerjaan) and for the 1 day no charge
Healthcare Insurance Program (BPJS Kesehatan)
Agency : Social Security Administrative Bodies (BPJS Ketenagakerjaan, BPJS Kesehatan)
The company's employees must be registered with two Social Security Programs (Badan
Penyelenggara Jaminan Sosial, BPJS), the Workers Social Security Program (BPJS
Ketenagakerjaan) and the Healthcare Insurance Program (BPJS Kesehatan).
The Workers Social Security Program (BPJS Ketenagakerjaan) covers occupational accident
security, old age security, pension security, as well as death security. Employers must participate
as follows: (i) Big and medium scale business: participate in programs including occupational
accident security, old age security, pension security, and death security program; (ii) Small
businesses participate in programs including occupational accident security, old age security, and
death security program; and (iii) Micro businesses participate in programs including occupational
accident security and death security.
Employees must also be registered with the Healthcare Insurance program (BPJS Kesehatan),
which requires the submission of the following information: name; nate of birth; name of the health
service provider selected by the employee; and other personal information, including: family
member(s), who will be covered by the health insurance program and salary information.
A joint application for both Social Security Programs can be submitted online at www.bpjs.go.id,
using a form available at website. An electronic certificate is provided in 1 day. The applicant will
also receive by post the membership card and certificate of registration.
11 Obtain a taxpayer registration number (NPWP) and a VAT collector number (NPPKP) 1 day (simultaneous with no charge
Agency : Tax Office previous procedure)
It is necessary to register with the tax authorities and obtain a VAT collector number (Nomor
Pokok Pengusaha Kena Pajak, NPPKP) and a taxpayer registration number (Nomor Pokok Wajib
Pajak, NPWP). An application can be submitted at the relevant tax office where the company is
located or online through http://www.pajak.go.id. To apply online, one must register at the website
as a taxpayer and follow the procedures therein, by filling the form and attaching copies of the
following:
- Deed of establishment
- Identity card (KTP) of one of active Director
- Statement letter regarding confirmation on place of business from one of the active Director
(form is provided).
The NPPKP is provided online and the NPWP card and Registered Statement Letter is obtained
within 1 calendar day upon the filing of the required document and without and fee, charge and/or
retribution. The NPWP can be either collected at the tax office or received by post.
Takes place simultaneously with previous procedure.
Page 10
Starting a Business - Surabaya
Standardized Company
Legal form Perseroan Terbatas (PT)
Paid-in minimum capital requirement No minimum
City Covered Surabaya
Indicator Surabaya East Asia & OECD high Best Regulatory

Procedure – Men (number) 12 6.5 4.9 1 (2 Economies)
Time – Men (days) 22 25.6 9.2 0.5 (New Zealand)
Cost – Men (% of income per capita) 5.7 17.4 3.0 0.0 (2 Economies)
Procedure – Women (number) 12 6.6 4.9 1 (2 Economies)
Time – Women (days) 22 25.7 9.2 0.5 (New Zealand)
Cost – Women (% of income per capita) 5.7 17.4 3.0 0.0 (2 Economies)
Paid-in min. capital (% of income per capita) 0.0 3.5 7.6 0.0 (120 Economies)
Figure – Starting a Business in Surabaya – Score
35.3 78.4 97.2 100.0
Procedures Time Cost Paid-in min. capital
Figure – Starting a Business in Surabaya and comparator economies – Ranking and Score
DB 2020 Starting a Business Score
0 100
82.2: Jakarta
77.7: Surabaya
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of
Page 11
Figure – Starting a Business in Surabaya – Procedure, Time and Cost

4
20
3.5

3
15
Time (days)
2.5
2
10
1.5
1
5
0.5
0 0
1 2 3 4 5 6 7 8 9 10 11 * 12
Procedures (number)
Page 12
Details – Starting a Business in Surabaya – Procedure, Time and Cost
1 Pay fee for obtaining clearance of company name Less than one day IDR 100,000
The process of company name clearance must be done through a computerized processing
system, the reservation and clearance is most commonly done in practice by a notary public. The
notary must first pay the fee of IDR 100,000 to obtain clearance for the proposed company name.
The payment is made by the notary at an online platform called yap (https://yap.id/).
2 Obtain clearance for the company's name at the Ministry of Law and Human Rights Less than one day included in procedure 1
To obtain the clearance for company name, the notary inserts a code online when reserving the
company name as proof of payment. The reserved name will be blocked for 60 days. If the
founding shareholders are confident that the same name has not been used by another
Indonesian company, this procedure is not necessary.
The company must not use a name which:

a. has been lawfully used by another company or is similar to the name of another company;
b. contravenes public order and/or decency;
c. is identical or similar to the name of a state agency, government agency, or international
agency, except with their approval;
d. does not conform to the purposes and objectives and business activities of the company, or
only designates the purposes and objectives of the company without having its own name;
e. consists of numbers or a set of figures, a letter or a set of letters that do not form any words; or
f. means a Company, a legal entity, or a civil enterprise (persekutuan perdata).
The Ministry of Law and Human Rights may reject a name application reservation if the requested
name is, among others, the same or resembles similarities to name of other companies.
According to Article 4 of MoLHR Reg. No. 1/2016, an electronic application must be submitted for
the use of the company's name to the Ministry of Law and Human Rights ("Minister of MOLHR")
through Legal Entity Administration System (Sistem Administrasi Badan Hukum, SABH). Such
application shall be performed by filing the Company's Name Application Form which at least
contains of the following information:
a. payment number of the approval of the use of the company's name; and
b. booked name of the company.
The approval of the company's name by the Minister of MOLHR shall be given electronically, as
regulated under MoLHR Reg. No.1/2016, which at least contains of the following information:
a. booking number of the name of the company;
b. name of the company which may be used;
c. date of booking;
d. expiry date; and
e. payment code.
3 Pay the non-tax state revenue (PNBP) fees for legal services Less than one day IDR 500,000 (validation of
Agency : Notary (online procedure) company as legal entity) +
The requirement to pay the non-tax state revenue fee (Penerimaan Negara Bukan Pajak, PNBP) IDR 430,000 (publication)
for legal services in relation to the establishment of a company (PT) is established by Schedule 1
of the Government Regulation No. 45 of 2016. The payment is made by the notary at an online
platform called yap (https://yap.id/).
The cost breakdown is as follows (as determined by Regulation No. 8 of 2018 of the Ministry of
Law and Human Rights of the Republic of Indonesia):
- 500,000 IDR for validation of company as legal entity;
- 430,000 IDR for publication in State Gazette and publication in the Supplement State Gazette.
4 Arrange for a notary to obtain the standard form of the company deed and notarize 1 day see procedure details
company documents
Agency : Notary
The notary must obtain the standard form for the company deed, which the business founders will
complete and review according to the provisions agreed by them. The notary will then notarize the
company documents (notarial deed, also known as the deed of establishment, and articles of
association).
Per Regulation No. 8 of 2018 of the Ministry of Law and Human Rights of the Republic of
Indonesia, the notary fees for preparation and notarization of company documents are:
- IDR 500,000 for companies with a capital of up to IDR 25 million;
- IDR 2 million, for companies with a capital of up to 500 million; and
- IDR 4 million for companies with a capital up to IDR 1 billion.
However, in Surabaya the fee may vary depending on the agreement between notary and client.
Page 13
5 Make a company seal 1 day IDR 30,000

Agency : Seal Maker
Even if company stamps are not legally required in Surabaya, companies need to stamp all
applications. Institutions will not receive and approve any documents without the stamp of the
company.
6 Apply for the Certificate of Company Domicile 4 days no charge

Agency : Municipality
The business founders must obtain a certificate of company domicile. This certificate has to be
signed by RT (neighborhood association), RW (community groups) and the head of the village
(the Lurah) where the company is located or by the building management if office space is leased.
There is no official fee for this certificate.
7 Apply to the Ministry of Law and Human Rights for approval of the deed of establishment Less than one day included in procedure 3
Agency : Ministry of Law and Human Rights (online procedure)
Based on Articles 9, 10, 29 and 30 Indonesian Company Law No. 40 year 2007, the application for
approval of Ministry of Law and Human Rights (the "Ministry of Law") on establishment of
company can be filed electronically by attaching with the certificate of bank account and a copy of
the relevant bank transmittal advice. The process is as follows:
•The application should be filled at the latest 60 days since the date of establishment deed;
• Since the application has already fulfilled, the Ministry of Law directly electronically stated no
objection on said application. However, if the application is not fulfilled, the Ministry of Law will
directly electronically state his objection on said application;
• in 30 days since the date of no objection by Ministry of Law, the applicant should submit the
original application and supporting documents;
• 14 days after fulfillment of above requirements, Ministry of Law will issue the legalization on the
establishment of the company;
• Data of company which its establishment has been approved by Ministry of Law i.e. name,
domicile, object and purpose, period, Capital Company will be inserted into Company Registry.
• The Ministry of Law will announce the establishment of company in Supplement State Gazette
(TBNRI) within 14 days of the Ministry's Approval Letter.
As of March 2014, the Ministry of Law and Human Rights issues the approval of the deed of
establishment electronically.
8 Apply for the single business number (NIB) 1 day No charge

Agency : Online Single Submission (OSS) portal
Companies register for the single business number (NIB) using the new Electronic Integrated
Business Licensing Services (Online Single Submission (OSS) portal) which became operational
on 9 July 2018.
9 Obtain a taxpayer registration number (NPWP) and a Value Added Tax (VAT) collector 1 day no charge
number (NPPKP) from the local Tax Office
Agency : Tax Office
It is necessary to register with the tax authorities and obtain a VAT collector number (Nomor
Pokok Pengusaha Kena Pajak, NPPKP) and a taxpayer registration number (Nomor Pokok Wajib
Pajak, NPWP). An application can be submitted at the relevant tax office where the company is
located or online through http://www.pajak.go.id. To apply online, one must register at the website
as a taxpayer and follow the procedures therein, by filling the form and attaching copies of the
following:
- Deed of establishment
- Identity card (KTP) of one of active Director
- Statement letter regarding confirmation on place of business from one of the active Director
(form is provided).
For online applications for the NPPKP and NPWP, the applicant must provide the hard copies of
documents and visit the Tax Office to pick up the NPWP card. In practice, unofficial fees may
apply and range from IDR 50,000 to IDR 300,000 for the technical surveyor.
Page 14
10 Apply for the permanent business trading license (Surat Izin Usaha Perdagangan, SIUP) 5 days no charge
and the company registration certificate (Tanda Daftar Perusahaan, TDP)
Agency : One Stop Shop (UPTSA)
A trading license (Surat Izin Usaha Perdagangan, SIUP) and a registration certificate (Tanda
Daftar Perusahaan, TDP) must be obtained for a new company. The trading license is the
business license for a non-facility companies engaging in trading business. It contains details
about the company activities and the person in charge of the company (normally the President
Director). The Ministry of Trade, which issues the SIUP for a non-facility company, may require a
letter of good conduct from the Indonesian police in support of the person in charge of the
company.
After reviewing the application, the Municipality passes it to the technical agency at the regional
office for cooperatives for further review. A signature of the head of the regional office as the
authority is necessary. Normally, the following copy of documents should be attached for the
application for a SIUP:
• The articles of association (copy).
• An attestation of location and address of the company’s offices.
• Identity card of the company President Director.
• Letter of approval from the Ministry of Law and Human Rights.
• Copy of NPWP.
The registration certificate (TDP) must be obtained by any new company and it certifies that the
company has been duly registered with the Companies Registry. As of July 2017, the application
for SUIP and TDP have merged into one application in Surabaya. The Investment and One-Stop
Shop Agency (UPTSA) for Surabaya has the authority to review the application and issue the
documents. An application can be submitted either online or in person and the hard copies of the
certificates are provided at the One-Stop Shop.
11 Register with the Ministry of Manpower 1 day no charge

Agency : Ministry of Manpower
Per Article 6 of the Law No.7 of 1981 concerning Mandatory Labor Affairs Report, the company
shall submit a labor report to the Ministry of Manpower and Transmigration ("Minister of
Manpower") or the appointed officer within a period of no more than 30 days as of the
establishment of the company. Such report shall contain the following information:
a. company identification;
b. manpower relation;
c. manpower protection; and
d. employment opportunity.
The labor report is submitted online via www.wajiblapor.kemnaker.go.id. The ratification of the
registration of the mandatory labor affairs report is performed within a period of 1 working day as
of the receipt of complete application.
Apply for the Workers Social Security Program (BPJS Ketenagakerjaan) and for the 7 days (simultaneous no charge
12 Healthcare Insurance Program (BPJS Kesehatan) with previous procedure)
Agency : Social Security Administrative Bodies (BPJS Ketenagakerjaan, BPJS Kesehatan)
The company's employees must be registered with two Social Security Programs (Badan
Penyelenggara Jaminan Sosial, BPJS), the Workers Social Security Program (BPJS
Ketenagakerjaan) and the Healthcare Insurance Program (BPJS Kesehatan).
The Workers Social Security Program (BPJS Ketenagakerjaan) covers occupational accident
security, old age security, pension security, as well as death security. Employers must participate
as follows: (i) Big and medium scale business: participate in programs including occupational
accident security, old age security, pension security, and death security program; (ii) Small
businesses participate in programs including occupational accident security, old age security, and
death security program; and (iii) Micro businesses participate in programs including occupational
accident security and death security.
Employees must also be registered with the Healthcare Insurance program (BPJS Kesehatan),
which requires the submission of the following information: name; nate of birth; name of the health
service provider selected by the employee; and other personal information, including: family
member(s), who will be covered by the health insurance program and salary information.
A joint application for both Social Security Programs can be submitted online at www.bpjs.go.id,
using a form available at website. An electronic certificate is provided in 1 day. The applicant will
also receive by post the membership card and certificate of registration.
Page 15
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications,
requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building
quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional
certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information
Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction
company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining all necessary
clearances, licenses, permits and certificates
The construction company (BuildCo):
• Submitting all required notifications and receiving all necessary - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest
inspections
business city. For 11 economies the data are also collected for the second largest business city.
• Obtaining utility connections for water and sewerage - Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a
licensed architect and a licensed engineer, both registered with the local association of architects
• Registering and selling the warehouse after its completion
or engineers. BuildCo is not assumed to have any other employees who are technical or licensed
Time required to complete each procedure (calendar days) experts, such as geological or topographical experts.
- Owns the land on which the warehouse will be built and will sell the warehouse upon its
• Does not include time spent gathering information completion.
• Each procedure starts on a separate day—though procedures
that can be fully completed online are an exception to this rule The warehouse:
• Procedure is considered completed once final document is - Will be used for general storage activities, such as storage of books or stationery.
received - Will have two stories, both above ground, with a total constructed area of approximately 1,300.6
square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be
• No prior contact with officials located on a land plot of approximately 929 square meters (10,000 square feet) that is 100%
owned by BuildCo, and the warehouse is valued at 50 times income per capita.
- Will have complete architectural and technical plans prepared by a licensed architect. If
capita)
preparation of the plans requires such steps as obtaining further documentation or getting prior
• Official costs only, no bribes approvals from external agencies, these are counted as procedures.
- Will take 30 weeks to construct (excluding all delays due to administrative and regulatory
Building quality control index (0-15) requirements).
• Quality of building regulations (0-2)
The water and sewerage connections:
• Quality control before construction (0-1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water
• Quality control during construction (0-3) delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage
• Quality control after construction (0-3) infrastructure, a septic tank in the smallest size available will be installed or built.
- Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow
• Liability and insurance regimes (0-2) of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and
• Professional certifications (0-4) a peak wastewater flow of 1,136 liters (300 gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the year; will be 1
inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.
Page 16
Dealing with Construction Permits - Jakarta
Standardized Warehouse
Estimated value of warehouse IDR 2,688,509,881.60

Procedures (number) 18 14.8 12.7 None in 2018/19
Time (days) 191 132.3 152.3 None in 2018/19
Cost (% of warehouse value) 4.8 3.2 1.5 None in 2018/19
Building quality control index (0-15) 14.0 9.4 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Jakarta – Score
48.0 52.4 76.0 93.3
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Jakarta and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
67.4: Jakarta
64.4: Surabaya
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 17
Figure – Dealing with Construction Permits in Jakarta – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)

2.5
Cost (% of warehouse value)

150 2
Time (days)
1.5
100
50
0.5
0 0
1 2 3 4 5 *6 7 8 9 10 11 12 13 * 14 15 16 17 * 18
Procedures (number)
Page 18
Figure – Dealing with Construction Permits in Jakarta and comparator economies – Measure of Quality
16 15.0
14.0
14 13.0 13.0 13.0
11.0
Index score
12
10 9.4
8
6
4
2
0
Jakarta China Malaysia Philippines Thailand Surabaya East

Asia
&
Pacific
Details – Dealing with Construction Permits in Jakarta – Procedure, Time and Cost
1 Request and obtain notarized copy of land ownership certificate 1 day IDR 25,000
Agency : Notary
BuildCo must notarize a copy of the land ownership certificate before applying for the building
permit.
2 Request city planning permit (KRK) and approval of the architectural drawing Pengesahan 1 day IDR 60,000
Gambar Perencanaan Arsitektur (formerly known as building site plan - RTLB) from City
Planning Office
Agency : Investment and One-Stop Services Department within the One-Stop Integrated Service
Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)
BuildCo must submit a completed application form, along with the following documentation to the
City Planning Office at the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu
Pintu/BPTSP) in order to obtain the city planning permit (KRK):
1. The application form signed by the authorized representative of the BuildCo;

2. A copy of land ownership certificate (which has been notarized);
3. A copy of the latest payment receipt for land and building tax;
4. A copy of the identity card (KTP/Driving License) of the authorized representative of the
applicant;
5. A copy of the deed of establishment of the BuildCo and its amendments (if any);
6. A power of attorney (as necessary).
The city planning official at the BPTSP will examine the application and will conduct a land
situation measurement (the procedural details of which are elaborated in the next section below).
The KRK is a statement that contains planning information about the plot of land that BuildCo
intends to build the warehouse on. The KRK also includes a city planning map scale (1:1000)
signed by the Head of Jakarta City Planning Office. The city planning map covers information on:
a. Building setback (GSB) - the borders within which BuildCo is allowed to construct the building
b. Road border lines (GSJ) - the borders of the front yard or block borders or road control borders
c. Land use plan - explanation about the benefits of the land
d. Type of building
e. Height of building in terms of floors/storey
f. Floor area ratio (FAR/KLB) - the multiplication figure used to calculate the total area of building
that is permitted
g. Building coverage (KDB)
h. Blocking - the arrangement of city spaces on certain lanes governing the length and width of the
piece of land for which the city planning permit is being applied for
BuildCo must also request approval of the architectural drawings Pengesahan Gambar
Perencanaan Arsitektur (formerly known as building site plan - RTLB) from the City Planning
Office. This plan outlines the exact position of the building on the city planning map and contains
the following information (some of which is already contained on the city planning map previously):
a. Building setback (GSB) - the borders within which BuildCo is allowed to construct the building
b. Road border lines (GSJ) - the borders of the front yard or block borders or road control borders
c. Building trace form and location
d. Building usage
e. Height of building, including KDB (building coverage) and KLB (floor area)
f. Building cuts
g. Parking lot
h. Kelzar circulation/entry of vehicles
BuildCo pays for printing situation maps, usually five at a cost of IDR 12,000 each, as part of the
spatial planning service.
Page 19
3 Receive inspection from City Planning Office 1 day no charge

The City Planning Office inspects the site to measure the pland situation and plant the marks on
the borders of the building. For this purpose, a Decision Letter on Regional Levy (Surat Ketetapan
Retribusi Daerah or "SKRD") will be issued.
4 Obtain KRK and Pengesahan Gambar Perencanaan Arsitektur (formerly known as RTLB) 20 days no charge
from City Planning Office
After the inspection, the application is forwarded to different offices within the City Planning Office
for approval. The location officer, the roads officer and the architectural officer approve the
application and will prepare the land measurement letter. When the internal procedure is
completed, the builder is notified (by phone, mail or electronically) and can pick up the KRK. The
recommendation letter includes the documents listed previously.
5 Request and obtain the preparation of the Environmental Management Plan (UKL) and 30 days IDR 15,000,000
Environmental Monitoring Plan (UPL)
Agency : External Consultant
Prior to obtaining a UKL-UPL, BuildCo must obtain the KRK and Pengesahan Gambar
Perencanaan Arsitektur (formerly known as building site plan - RTLB). BuildCo hires an external
consultant that will prepare the Environmental Management Plan (UKL) and Environmental
Monitoring Plan (UPL). When they are ready, BuildCo will submit the documents to the relevant
mayor or regent, governor of the DKI Jakarta province, or the Minister of Environment, depending
on the location of the activities, to obtain a UKL-UPL recommendation.
6 Obtain a soil test 21 days IDR 25,000,000

Agency : Private engineering firm
BuildCo will request a soil test for the structural calculations for the foundation.
7 Request and obtain the approval of the Environmental Management Plan (UKL) and 10 days no charge
The legal basis for this procedure is:
• Law No. 32 of 2009 regarding the Environment
• Decision of the Minister of the Environment No 86 of 2002 on Implementation of UKL and UPL
Page 20
8 Request and obtain building construction permit (IMB) 42 days IDR 58,471,407
When BuildCo has the complete set of documents (see below) and the application is submitted,
the Supervision and Control Office will conduct an inspection. Given that the plot where the
warehouse will be built is empty, no representative from BuildCo needs to be present. Officials will
only verify that the plot is vacant.

• Regulation of the Head of the Local Building Supervision and Control (P2B) Office No. 21 Year
2009, Annex I point I.b
• The legal basis for the time to complete this step is 15 days working days pursuant to Regulation
129 of 2012.
The supporting documents required are:

• Photocopy of the ID Card
• Photocopy of the Land Certificate (notarized)
• Land use permit (SIPPT)
• KRK and Pengesahan Gambar Perencanaan Arsitektur (formerly known as building site plan -
RTLB) (description and map of the city, including the complete plan of the building) obtained from
the City Planning Office
• Architectural, structural, mechnical and electrical as-built drawings (4 sets)
• Results of soil investigation (4 sets)
• Photocopy of the license to operate as a Building Planner
• Photocopy of the license of the supervising director
• Photocopy of the license of the architect, the structural engineer, the mechanical engineer and
the electrical engineer who prepare the drawings
• Statement of uncontested ownership of the land for which IMB is applied
• Company’s Deed of Establishment
• Company’s tax ID (NPWP)
• Completed Application Form
• Receipt of UKL-UPL or UKL-UPL •Recommendation from the BPLHD
• Copy of evidence of tax payment for the most current year
• Budget plan (if required)
The Building Supervision and Control Office has 4 different teams that review the architectural,
structural, mechanical and electrical drawings. The application is first reviewed by TPAK (the team
that reviews the architectural drawings). This can take 3-4 weeks. The application is then
forwarded to TPKB (team that reviews the structural drawings) and in parallel to TPIB (team that
reviews the mechanical, electrical and plumbing drawings). This also takes about 3-4 weeks on
average.
According to Bylaw No. 3 on Building Tariff Rates of October 2012, the permit fee is calculated as
follows:
RPP = L x It x HSbg = 1,300.6 x 2.1 x 25,000
• L = area of the building (1,300.6 sq. m)

• It = index that is calculated as follows:
Ikg x If x Ik x Iw x Ipt where Ikg = 1 (for a new building); If = 3 (for commercial buildings); Ik = 0.7;
Iw = 1 (for permanent buildings); Ipt = 1 (if the building does not have a basement). Therefore, It =
1 x 3 x 0.7 x 1 x 1 = 2.1
• HSbg = IDR 25,000 / sq. m.
9 Receive inspection upon completion of foundation 1 day no charge

According to the building regulations, the Supervision and Control Office must inspect during the
various phases of construction.
10 Receive inspection upon completion of the structure 1 day no charge

11 Receive inspection upon completion of roofing 1 day no charge

Page 21
12 Submit building completion report to Supervision and Control Office 1 day no charge
The construction completion and compliance report is a prerequisite for obtaining the certificate of
proper functioning (SLF) and the usage permit. The party issuing the official report on the
completion of the construction and compliance with the building permit is the Supervising Director,
who can be an individual, a group of experts, or an entity appointed by the project owner to
supervise the construction work. For the Doing Business case study, the supervising director
would most likely be in-house.
13 Receive final inspection from the Fire Department 1 day no charge

Agency : Fire Department
The Fire Department must conduct a final inspection once the building is completed. They will
then issue a certificate of fire safety recommendations stating the building was built according to
the proper safety standards. This fire safety certificate is needed in order to obtain the SLF.
To obtain the fire safety certificate, an application is to be filed to the relevant PTSP with the
following documents before the inspection:
1. an application letter;
2. identity of the applicant;
3. a Power of Attorney (as applicable);
4. Constitutional documents and Taxpayer Registration Number (Nomor Pokok Wajib Pajak) of the
applicant, in case the applicant is a legal entity;
5. the IMB;
6. Fire Safety Expertise Registration Certificate (Tanda Daftar Keahlian Keselamatan Kebakaran);
and
7. a Technical Proposal.
Receive final inspection from the Supervision and Control Office 1 day no charge
14 Agency : Local Administrative Building Office – Supervision and Control Office (P2B) within the
One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)
Pursuant to Regulation 25/2007 and Regulation 129/2012, before the issuance of the certificate of
proper functioning or SLF, the relevant officer will conduct an inspection to determine the
completeness of technical requirements of the construction. The inspection is conducted to ensure
that the building is properly built for occupancy or usage.
15 Obtain water and sewerage connection 20 days IDR 30,492,880

Agency : PAM Jaya
The application to obtain water and sewerage connection shall be submitted to PAM Jaya through
its designated providers, which are PT AETRA Air Jakarta for warehouses located in the North and
East regions of Jakarta, and PT PAM Lyonnaise Jaya (PALYJA) for warehouses located in the
South, Central, and West regions of Jakarta.
The application should be submitted along with the following documents:

1. A copy of land and building tax documents;
2. A copy of the KTP (the identity card) of BuildCo's director or the applicant;
3. A copy of business license of BuildCo;
4. The prediction on water needs.
16 Obtain SLF (certificate of proper functioning) from the Supervision Office 49 days no charge
Agency : Local Administrative Building Office – Supervision and Control Office (P2B) within the
One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)
The SLF is required under Law No. 25/PRT/M/2007 and Law No. 7/2010 on Buildings. The
certificate is a declaration that the building has been built according to the conditions stipulated in
the building permit and can be used in accordance with its intended function. BuildCo must submit
the following documents in order to obtain the SLF:
- Completed application form;

- A copy of applicant's ID card (KTP);
- A copy of Taxpayer Registration Number (NPWP) of the applicant;
- A copy of legalized land and building ownership proof or a copy of SIPPT (Principal License to
Use and Develop Land);
- A copy of the building permit (IMB) and all of its attachments;
- A copy of the architectural drawing on the attachment to the IMB or the latest permit;
- 3 sets of City Plan Information (Keterangan Rencana Kota or KRK) or Building Zoning Plan
(Rencana Tata Letak Bangunan or RTLB) or situation map (or peta situasi);
- Statement of Building Completion (Keterangan Selesai Membangun) and building
implementation result (if any);
- 3 sets of the legalized as-built drawing of the building;
- a digital form of the as built drawing of the building architecture including situation drawing in
CAD format (if required);
- a report of the building maintenance.
Page 22
17 Register the warehouse with the Regional Tax Services Unit 11 days no charge
Agency : Regional Tax Services and Retribution Unit (Unit Pelayanan Pajak dan Retribusi Daerah)
within the One-Stop Integrated Service Agency (Badan Pelayanan Terpadu Satu Pintu/BPTSP)
After the warehouse is built BuildCo must update its records at the Regional Tax Services Unit.
While in theory this update can be done automatically, many builders do it in person to avoid
delays. This is critical when a builder wants to sell the property or use it as collateral to obtain a
loan.
Pursuant to the Governor of DKI Jakarta Regulation No. 65 of 2018 on Regional Tax Identification
Numbers (which revoked the Governor of DKI Jakarta Regulation No. 202 of 2012), registration of
a warehouse is to be submitted with the following documents:
1. a copy of the applicant's identity;

2. a Power of Attorney signed over an IDR6,000 duty stamp (if relevant);
3. copies of the applicant's constitutional documents;
4. a copy of the land certificate;
5. a statement letter stating that the land is not currently an object of a dispute;
6. a certificate from the Head of the Sub-District where the warehouse is located;
7. a copy of the land sale and purchase agreement;
8. a copy of the IMB; and
9. a validated/certified copy of the Statement on the Payment of Regional Tax on Customs for the
Acquisition over the Right of Land and Building (SSPD BHPTB).
Register the warehouse with the Regional Office of the Ministry of Trade 9 days IDR 100,000
18 Agency : Investment and One-Stop Services Department within the One-Stop Integrated Service
In order to register the warehouse with the Ministry of Trade and obtain a warehouse registration
certificate (Tanda Daftar Gudang or "TDG"), BuildCo must submit the following documents:
1. A copy of the identity card (KTP) of the owner of or person responsible for BuildCo;
2. A copy of the deed of establishment of BuildCo and its amendments (if any):
3. A copy of building permit (IMB) of the warehouse; and
4. Two photos of the owner of or person responsible for BuildCo with the size 4x6cm.
During the submission of the above documents, the applicant must show the original documents
to the officer. The holder of warehouse registration certificate is obliged to re-register the certificate
every 5 years.
Warehouses in a privately owned port, warehouses in a bonded zone, and warehouses adjacent
to the plant are exempted from the registration requirement.
Page 23
Details – Dealing with Construction Permits in Jakarta – Measure of Quality
Answer Score
Building quality control index (0-15) 14.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 1.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid; Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in- 1.0
house engineer;
Inspections at various
phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency;
Yes, in-house
engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 1.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain
insurance ; Insurance
is commonly taken in
practice.
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans Minimum number of 2.0
or drawings are in compliance with existing building regulations? (0-2) years of experience;
University degree in
architecture or
engineering; Being a
registered architect or
engineer.
Page 24
What are the qualification requirements for the professional who supervises the construction on the ground? (0- Minimum number of 2.0
2) years of experience;
engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 25
Dealing with Construction Permits - Surabaya
Standardized Warehouse
Estimated value of warehouse IDR 2,688,509,881.60

Procedures (number) 18 14.8 12.7 None in 2018/19
Time (days) 232.5 132.3 152.3 None in 2018/19
Cost (% of warehouse value) 3.5 3.2 1.5 None in 2018/19
Building quality control index (0-15) 13.0 9.4 11.6 15.0 (6 Economies)
Figure – Dealing with Construction Permits in Surabaya – Score
48.0 40.5 82.5 86.7
Procedures Time Cost Building quality control index
Figure – Dealing with Construction Permits in Surabaya and comparator economies – Ranking and Score
DB 2020 Dealing with Construction Permits Score
0 100
67.4: Jakarta
64.4: Surabaya
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores
are the simple average of the scores for each of the component indicators.
Page 26
Figure – Dealing with Construction Permits in Surabaya – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)

2.5
200
Cost (% of warehouse value)

2
150
Time (days)
1.5
100
1
50 0.5
0 0
1 2 3 4 5 *6 7 8 9 10 11 12 13 * 14 15 16 17 * 18
Procedures (number)
Page 27
Figure – Dealing with Construction Permits in Surabaya and comparator economies – Measure of Quality
16 15.0
14.0
14 13.0 13.0 13.0
11.0
Index score
12
10 9.4
8
6
4
2
0
Surabaya China Malaysia Philippines Thailand Jakarta East

Asia
&
Pacific
Details – Dealing with Construction Permits in Surabaya – Procedure, Time and Cost
1 Request and obtain notarized copy of land ownership certificate 1 day IDR 25,000
Agency : Notary
BuildCo must notarize a copy of the land ownership certificate before applying for the city planning
permit and building permit.
2 Request city planning permit (SKRK) and building construction permit (IMB) from Surabaya 0.5 days no charge
One-Stop (Unit Pelayanan Terpadu Satu Atap - UPTSA)
Agency : Surabaya One-Stop Shop (Unit Pelayanan Terpadu Satu Atap - UPTSA)
In order to obtain the city planning permit (SKRK), BuildCo must submit the following documents:
a. Application form (available at Surabaya one-stop shop);

b. Copy of identity card of the applicants;
c. Copy of property tax invoice and receipt;
d. Legalized copy of land ownership certificate.
e. BuildCo’s deed of establishment
f. License of supervising engineer
BuildCo can see the map of Surabaya online and click on the location where they intend to build
the project. Majority of applicants apply for the city planning permit in person, although it is
possible to submit the documents online.
Once it submits the documents, BuildCo is interviewed about the project details. After that, the
Surabaya one-stop shop checks adherence of the location with master plan and calculates the
retribution charges. BuildCo pays the fees at the Surabaya one-stop shop and the file is
transferred to the City Planning Agency (Dinas Cipta Karya dan Tata Ruang). City Planning
Agency representatives inspect the future building site, measure the location, prepare drawings,
and position the future building's plot in technical master plan. They also prepare location
drawings (with border, base coefficient, size coefficient, and technical requirements). When all is
complete, the City Planning Agency evaluates, registers, and approves the application. Once the
application has been approved, the City Planning Agency transfers the file back to the Surabaya
one-stop shop which then notifies BuildCo that the statement is ready for pick up.
Regulations establish a statutory time of 7 days for the city planning statement to be issued, but it
usually takes longer.
This procedure is governed by the following regulations:

a. Local Regulation No. 7 of 2010 on Buildings
b. Local Regulation No. 5 of 2012 On City Maps
c. Major Regulation No. 39 of 2012 on Guidelines and Technical Standards of Land Use
3 Receive inspection from City Planning Agency (Dinas Cipta Karya dan Tata Ruang) 1 day no charge
Agency : City Planning Agency (Dinas Cipta Karya dan Tata Ruang)
A technical team of the City Planning Agency inspects the future building site, takes photographs
of the terrain and measures the building demarcation lines ("Garis Sempadan Bangunan) in the
presence of BuildCo representatives.
4 Obtain city planning permit (SKRK) from Surabaya One-Stop Shop (Unit Pelayanan Terpadu 21 days no charge
Satu Atap - UPTSA)
5 Request and obtain the preparation of the Environmental Management Plan (UKL) and 45 days IDR 15,000,000
Agency : External Consultant
Prior to obtaining a UKL-UPL, BuildCo must obtain the SKRK. BuildCo hires an external
consultant that will prepare the Environmental Management Plan (UKL) and Environmental
Monitoring Plan (UPL). When this is ready BuildCo will submit the documents to the Local
Environmental Management Agency (BPLHD) in Surabaya for approval.
6 Obtain a geotechnical study/soil test 12 days IDR 3,000,000

Agency : Private Engineering Firm
BuildCo will request a soil test for the structural calculations for the foundation.
Page 28
7 Obtain the approval for the Environmental Management Plan (UKL) and Environmental 14 days IDR 3,901,800
Monitoring Plan (UPL)
Agency : Local Environmental Control Agency (BPLHD) / Surabaya One-Stop Shop (Unit
Pelayanan Terpadu Satu Atap - UPTSA)
a. Bylaw No. 4 of 2011 on the HO
b. Mayor Regulation No. 74 of 2011 on Implementation of Regional Regulation No. 4 of 2011
The local environmental agency (BPLHD) will review the UKL and UPL and conduct the
envirnomental impact assessment. But the letter of approval is issued by the one-stop shop.
The one-stop shop charges a fee for the approval letter. According to the fee schedule, buildings
over 900 sq. m. are charged at a fee of IDR 500 / sq. m. x 1300.6 sq. m. x 2 (location index) x 3
(environmental index) = IDR 3,901,800.
Smaller buildings with limited environmental impact can submit an Surat Pernyataan
Kesanggupan Pengelolaan Lingkungan (Statement of Environmental Management Capability). In
practice, construction firms choose to submit an UKL/UPL instead for warehouses and similar
construction projects.
8 Obtain building construction permit (IMB) 45 days IDR 14,225,800

The supporting documents required to apply for a building permit (IMB) are:
a. Application form and statement letter of construction requirement adherence;
b. Copy of ID card of BuildCo's director;
c. Copy of property tax receipt;
d. Copy of land ownership certificate;
e. City planning permit (SKRK);
f. Construction accountability statement, prepared by BuildCo's architect;
g. Picture of the site and building plans, prepared by BuildCo's architect.
h. Design drawings (3 copies):
- Landscaping (scale 1:1000/1:5000),
- Lay out (scale 1:100),
- Foundation base, roof, sanitation (1:100);
i. Structural drawings.
j. Copy of UKL / UPL
It is possible to submit the required documents online.
According to Regulation No. 53 of 2011 and No. 37 of 2012, the legal time limit to issue the IMB is
20 days. But in practice, it takes much longer.
Architects and engineers will review all the drawings. There is usually a lot of back and forth
interactions between the one-stop shop and the applicant.
9 Receive inspection upon completion of foundation 1 day no charge

Agency : Local Administrative Building Office
According to the building regulations, the Local Administrative Building Office must inspect during
the various phases of construction, although this rarely happens in practice.
10 Receive inspection upon completion of the structure 1 day no charge

11 Receive inspection upon completion of roofing 1 day no charge

12 Submit building completion report to the one-stop shop 1 day no charge

The construction completion and compliance report is a prerequisite for obtaining the certificate of
proper functioning (SLF) and the usage permit. The party issuing the official report on the
completion of the construction and compliance with the building permit is the Supervising Director,
who can be an individual, a group of experts, or an entity appointed by the project owner to
supervise the construction work.
13 Receive final inspection from the Fire Department 1 day no charge

Agency : Fire Department
The Fire Department must conduct a final inspection once the building is completed. They will
then issue a certificate of fire safety recommendations stating the building was built according to
the proper safety standards. This fire safety certificate is needed in order to obtain the SLF.
Page 29
Receive final inspection from the Administrasi Surabaya & Dinas Cipta Karya dan Tata 1 day no charge
14 Ruang (Surabaya Administration and Office of Human Settlements and Spatial Planning)
Once the Fire Department has conducted the final inspection and the Supervising Director has
submitted the completion report, the Local Administrative Building Office will conduct a final
inspection to ensure that the building was built according to the conditions stipulated in the
building permit. Once the inspection is completed, the Local Administrative Building Office will
issue an SLF (certificate of proper functioning). However, the final inspection does not always
occur in practice, although it is legally required.
15 Obtain water and sewerage connection 20 days IDR 57,812,876

Agency : PDAM Surya
The company notifies the industrial manager that the warehouse is ready for utility hook-ups.
16 Obtain SLF (certificate of proper functioning) from the Local Administrative Building Office 49 days no charge
The SLF is a declaration that the building has been built according to the conditions stipulated in
the building permit and can be used in accordance with its intended function.
17 Register warehouse with the Land and Building Tax Office (PBB) 30 days no charge
Agency : Land and Building Tax Office
After the warehouse is built and the SLF (Certificate of proper functionning ) is obtained, BuildCo
needs to update its records at the Land and Building Tax Office. The process can take 1-2 months
because the office must appraise the value of the building.
Register the warehouse with Surabaya One-Stop Shop (Unit Pelayanan Terpadu Satu Atap) 1 day no charge
18 Agency : Surabaya One-Stop Shop (Unit Pelayanan Terpadu Satu Atap - UPTSA)
In order to register the warehouse with the one-stop shop, BuildCo must submit the following
documents:
a. Copy of ID Card;
b. Copy of building permit (IMB);
c. Copy of certificate of land ownership;
d. Copy of business trading license (SIUP) and company registration (TDP);
e. BuildCo's director's pictures (2 copies - size 4x6 cm)

a. Local Regulation No. 1/2010, regarding warehouse registration charges
b. Mayor Regulation No. 35/2010, regarding warehouse registration procedures.
Both regulations have been implemented since 2010.
Page 30
Details – Dealing with Construction Permits in Surabaya – Measure of Quality
Answer Score
Building quality control index (0-15) 13.0
Quality of building regulations index (0-2) 1.0
How accessible are building laws and regulations in your economy? (0-1) Available online; Free 1.0
of charge.
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any List of required 0.0
accessible website, brochure or pamphlet? (0-1) documents; Fees to
be paid.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing Licensed architect; 1.0
building regulations? (0-1) Licensed engineer.
Quality control during construction index (0-3) 2.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in- 1.0
house engineer;
Inspections at various
phases.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved Yes, final inspection 2.0
plans and regulations? (0-2) is done by
government agency;
Yes, in-house
engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 2.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use Architect or engineer; 1.0
(Latent Defect Liability or Decennial Liability)? (0-1) Professional in
charge of the
supervision;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or No party is required 1.0
problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) by law to obtain
insurance ; Insurance
is commonly taken in
practice.
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans Minimum number of 2.0
or drawings are in compliance with existing building regulations? (0-2) years of experience;
architecture or
engineering; Being a
registered architect or
engineer.
Page 31
What are the qualification requirements for the professional who supervises the construction on the ground? (0- Minimum number of 2.0
2) years of experience;
engineering,
construction or
construction
management; Being
a registered architect
or engineer.
Page 32
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally,
the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data
collection for the project was completed in May 2019. See the methodology for more information.
Procedures to obtain an electricity connection (number) To make the data comparable across economies, several assumptions about the warehouse, the
electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining all necessary
clearances and permits
The warehouse:
• Completing all required notifications and receiving all necessary - Is owned by a local entrepreneur and is used for storage of goods.
inspections
- Is located in the economy’s largest business city. For 11 economies the data are also collected for
• Obtaining external installation works and possibly purchasing the second largest business city.
material for these works - Is located in an area where similar warehouses are typically located and is in an area with no
physical constraints. For example, the property is not near a railway.
• Concluding any necessary supply contract and obtaining final
- Is a new construction and is being connected to electricity for the first time.
supply
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square
Time required to complete each procedure (calendar days) feet). The plot of land on which it is built is 929 square meters (10,000 square feet).
• Is at least 1 calendar day The electricity connection:

• Each procedure starts on a separate day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-
• Does not include time spent gathering information kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution
• Reflects the time spent in practice, with little follow-up and no network and is either overhead or underground, whichever is more common in the area where the
prior contact with officials
warehouse is located and requires works that involve the crossing of a 10-meter road (such as by
excavation or overhead lines) but are all carried out on public land. There is no crossing of other
owners’ private property because the warehouse has access to a road.
capita)
- Does not require work to install the internal wiring of the warehouse. This has already been
• Official costs only, no bribes completed up to and including the customer’s service panel or switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours
• Duration and frequency of power outages (0–3) a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts
• Tools to monitor power outages (0–1) (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours
(kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
• Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for
the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.
• Financial deterrents limiting outages (0–1)
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial warehouse in case

study
*Note: Doing Business measures the price of electricity, but it is

not included in the ease of doing business score nor in the ranking
on the ease of getting electricity.
Page 33
Getting Electricity - Jakarta
Standardized Connection
Name of utility PT PLN
Price of electricity (US cents per kWh) 10.7

Procedures (number) 4 4.2 4.4 3 (28 Economies)
Time (days) 34 63.2 74.8 18 (3 Economies)
Cost (% of income per capita) 233.8 594.6 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 6 4.0 7.4 8 (26 Economies)
Figure – Getting Electricity in Jakarta – Score
83.3 93.0 97.1 75.0
Reliability of supply and transparency of

Procedures Time Cost
tariff index
Figure – Getting Electricity in Jakarta and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
88.0: Surabaya
87.1: Jakarta
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Jakarta – Procedure, Time and Cost

250
30
200
25
Time (days)
20 150
15
100
10
50
5
0 0
1 2 3 4
Procedures (number)
Page 34
Figure – Getting Electricity in Jakarta and comparator economies – Measure of Quality
9 8 8
8 7
7
Index score
6 6 6
6
5 4.0
4
3
2
1
0

Asia
&
Pacific
Page 35
Details – Getting Electricity in Jakarta – Procedure, Time and Cost
1 Request and obtain inspection and certificate of operation worthiness (SLO) for the 7 calendar days IDR 2,205,000
internal wiring installation
Agency : KONSUIL/ PPILN/ JASERINDO
After internal wiring in the building is finished, customer can ask third party to check it and get
SLO. SLO is statement from third party that building is safe to have power. SLO certificates are
obtained from a certified service provider authorized to provide SLO. Komite Nasional
Keselamatan Untuk Instalasi Listrik (KONSUIL), Perkumpulan Perlindungan Instalasi Listrik
Nasional (PPILN) or Jasa Sertifikasi Indonesia (JASERINDO) act as independent bodies in
charge of inspecting and verifying the conformity of the installation works vis-a-vis the norms in
place. In order to obtain the SLO certificate, the client has to pay the fee, the SLO inspector will
visit the site to check installation of internal wiring, and will issue the SLO number to the client,
which entails an interaction. At a later stage, the client submits the SLO to PLN. SLO is required in
order for PLN to activate the connection.
Note: Usually, customers apply to PLN before building is finished. In parallel with PLN works,
customers do internal wiring. SLO internal wiring inspection is done separately from final
inspection by PLN.
2 Submit connection application to PLN and await approval and estimate 3 calendar days IDR 123,487,620.39
Agency : PT Perusahaan Listrik Negara (PLN)
The client can apply for a new connection through PLN's web-site www.pln.co.id - or through its
call center. The client needs to input the following information with the application:
- Identity Card number
- Capacity of electricity connection
- Address of warehouse (the client can show the exact location by tagging a map on PLN's
website)
However, part of application (such as installation drawings) is submitted in person.
Upon his/her application, the client receives a registration number. The registration number is a
code with which the client can pay the connection fee and the security deposit charge. The
payment can be done through most local banks and their delivery channels (e.g. ATM, e-banking).
Customers have an option to pay in installments. Once the payment is processed, one of the
vendors of PLN will be informed that the external works can commence.
3 Obtain external works from PLN's contractor 21 calendar days IDR 0

Agency : PT Perusahaan Listrik Negara (PLN)'s contractor
The external works consist of expanding the distribution network by installing an overhead
transformer and connecting the warehouse to the network. PLN will typically contract-out the
external works to approved vendors, but it will provide the main materials needed (e.g.
transformer, cables).
4 Request and obtain final connection from PLN 3 calendar days IDR 0
At this stage, after external works are done, the customer submits SLO to PLN. PLN schedules
final inspection to run electricity test. The client needs to come to the side. Experts noted that SLO
inspection is done separately from final inspection by PLN, which assumes a separate interaction.
Page 36
Details – Getting Electricity in Jakarta – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 6
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 2.6
System average interruption frequency index (SAIFI) 2.2
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? Yes
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online www.pln.co.id/blog/tarif-

tenaga-listrik
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 37
Getting Electricity - Surabaya
Standardized Connection
Name of utility PT Perusahaan Listrik Negara (PLN)
Price of electricity (US cents per kWh) 11.5

Cost (% of income per capita) 233.8 594.6 61.0 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 6 4.0 7.4 8 (26 Economies)
Figure – Getting Electricity in Surabaya – Score
83.3 96.5 97.1 75.0
Reliability of supply and transparency of

tariff index
Figure – Getting Electricity in Surabaya and comparator economies – Ranking and Score
DB 2020 Getting Electricity Score
0 100
88.0: Surabaya
87.1: Jakarta
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the
scores for all the component indicators except the price of electricity.
Figure – Getting Electricity in Surabaya – Procedure, Time and Cost

250
25
200
20
Time (days)
150
15
10 100
5 50
0 0
1 2 3 4
Procedures (number)
Page 38
Figure – Getting Electricity in Surabaya and comparator economies – Measure of Quality
9 8 8
8 7
7
Index score
6 6 6
6
5 4.0
4
3
2
1
0

Asia
&
Pacific
Page 39
Details – Getting Electricity in Surabaya – Procedure, Time and Cost
1 Request and receive inspection and certificate of operation worthiness for internal wiring 7 calendar days IDR 2,205,000
installation
Agency : KONSUIL/ PPILN/ JASERINDO
After internal wiring in the building is finished, customer can ask third party to check it and get
certificate of operation worthiness of electrical installation (SLO). SLO is statement from third party
that building is safe to have power. SLO certificates are obtained from a certified service provider
authorized to provide SLO. Komite Nasional Keselamatan Untuk Instalasi Listrik (KONSUIL),
Perkumpulan Perlindungan Instalasi Listrik Nasional (PPILN) or Jasa Sertifikasi Indonesia
(JASERINDO) act as independent bodies in charge of inspecting and verifying the conformity of
the installation works vis-a-vis the norms in place. In order to obtain the SLO certificate, the client
has to pay the fee, the SLO inspector will visit the site to check installation of internal wiring, and
will issue the SLO number to the client, which entails an interaction. At a later stage, the client
submits the SLO to PLN. SLO is required in order for PLN to activate the connection.
Note: Usually, customers apply to PLN before building is finished. In parallel with PLN works,
customers do internal wiring. SLO internal wiring inspection is done separately from final
inspection by PLN.
2 Submit connection application to PLN and await approval and estimate 3 calendar days IDR 123,487,620.39
The client can apply for a new connection through PLN's web-site www.pln.co.id - or through its
call center. The client needs to input the following information with the application:
- Identity Card number
- Capacity of electricity connection
- Address of warehouse (the client can show the exact location by tagging a map on PLN's
website)
However, part of application (such as installation drawings) is submitted in person.
On-site external inspections are no-longer carried-out by PLN thanks to a GIS system.
Upon his/her application, the client receives a registration number. The registration number is a
code with which the client can pay the connection fee and the security deposit charge. The
payment can be done through most local banks and their delivery channels (e.g. ATM, e-banking).
Customers have an option to pay in installments. Once the payment is processed, one of the
vendors of PLN will be informed that the external works can commence.
3 Obtain external works by PLN's contractor 13 calendar days IDR 0

Agency : PT Perusahaan Listrik Negara (PLN) 's contractor
The external works consist of expanding the distribution network by installing an overhead
transformer and connecting the warehouse to the network. PLN will typically contract-out the
external works to approved vendors, but it will provide the main materials needed (e.g.
transformer, cables).
4 Request and obtain final connection from PLN 3 calendar days IDR 0
At this stage, after external works are done, the customer submits SLO to PLN. PLN schedules
final inspection to run electricity test. The client needs to come to the side. Experts noted that SLO
inspection is done separately from final inspection by PLN, which assumes a separate interaction.
Page 40
Details – Getting Electricity in Surabaya – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 6
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 3.6
System average interruption frequency index (SAIFI) 2.2
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 5.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? Yes
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online www.pln.co.id/blog/tarif-

tenaga-listrik
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 41
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a
building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality
of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access
to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
Procedures to legally transfer title on immovable property To make the data comparable across economies, several assumptions about the parties to the
(number) transaction, the property and the procedures are used.
• Preregistration procedures (for example, checking for liens, The parties (buyer and seller):
notarizing sales agreement, paying property transfer taxes)
- Are limited liability companies (or the legal equivalent).
• Registration procedures in the economy's largest business city. - Are located in the periurban (that is, on the outskirts of the city but still within its official limits)
• Postregistration procedures (for example, filling title with area of the economy’s largest business city. For 11 economies the data are also collected for the
municipality) second largest business city.
- Are 100% domestically and privately owned.
Time required to complete each procedure (calendar days) - Perform general commercial activities.
• Does not include time spent gathering information
The property (fully owned by the seller):
• Each procedure starts on a separate day - though procedures
- Has a value of 50 times income per capita, which equals the sale price.
that can be fully completed online are an exception to this rule
- Is fully owned by the seller.
• Procedure is considered completed once final document is - Has no mortgages attached and has been under the same ownership for the past 10 years.
received - Is registered in the land registry or cadastre, or both, and is free of title disputes.
• No prior contact with officials - Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its
official limits), and no rezoning is required.
Cost required to complete each procedure (% of property - Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two-
value) story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse
is 10 years old, is in good condition, has no heating system and complies with all safety standards,
• Official costs only (such as administrative fees, duties and building codes and legal requirements. The property, consisting of land and building, will be
taxes).
transferred in its entirety.
• Value Added Tax, Capital Gains Tax and illicit payments are - Will not be subject to renovations or additional construction following the purchase.
excluded - Has no trees, natural water sources, natural reserves or historical monuments of any kind.
- Will not be used for special purposes, and no special permits, such as for residential use,
Quality of land administration index (0-30)
industrial plants, waste storage or certain types of agricultural activities, are required.
• Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
• Transparency of information index (0–6)

• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 42
Registering Property - Jakarta

Cost (% of property value) 8.5 4.5 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 15.5 16.2 23.2 None in 2018/19
Figure – Registering Property in Jakarta – Score
58.3 87.1 43.6 51.7

Quality of the land administration index
Figure – Registering Property in Jakarta and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
60.2: Jakarta
59.6: Surabaya
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
Page 43
Figure – Registering Property in Jakarta – Procedure, Time and Cost
Time (days) Cost (% of property value)

8
25 7
Cost (% of property value)

6
20
Time (days)
15
4
10 3
2
5
1
0 0
1 2 3 4 5 6
Procedures (number)
Page 44
Figure – Registering Property in Jakarta and comparator economies – Measure of Quality
30 26.5
25
24.0
Index score
20
19.0
15.5 15.5 16.2
15 12.5
10

Asia
&
Pacific
Details – Registering Property in Jakarta – Procedure, Time and Cost
1 Land certificate examination at the Land Office 3 days IDR 50,000

Agency : Land Office
A land certificate examination is carried out by a Land Deed Official. If the land book concerned is
available at the Land Office, it usually takes a few hours to 1 day. However, since the majority of
land records are still kept in paper format, sometimes the land book is unavailable, misplaced or
being used by another division of the Land Office, so then the examination process will be
pending, and it usually takes a few days to obtain the information from the Land Office. The land
title search would also involve a check at the local city planning office located at the local
government office to determine the intended use of the said plot of land, whether for residences,
industry or green belt. No written statement is given, but a note made on the certificate saying
'Has been examined and in accordance with the register at the Land Office'. Even if the land
certificate examination could be requested online, the user needs to go directly to the Land
Registry for picking up the official valid signed document. If the user prefers to demand the
document personally, the fee needs to be paid first at the bank, and the receipt taken to the Land
Office for starting the examination.
2 Payment of the transfer and acquisition taxes 1 day IDR 197,638,241.12;

Agency : Bank (2.5% of the property price
The seller must pay the Transfer Tax before the execution of the transfer deed. The tax on (Transfer Tax) + 5% of the
Transfer of Land and Building (Transfer Tax) in the amount of 2.5% which is calculated on the sale property price minus Rp.
or Sales Value of the Tax Object ("NJOP"). If the sale value is higher than the NJOP, then the sale
80,000,000 which is tax-
value will be used. If the sale value is lower than the NJOP, then the NJOP value will be used. The
free (Tax on Acquisition of
Transfer Tax is paid to a Bank Persepsi - bank appointed by the Ministry of Finance to accept tax
Land and Building))
payments and it's collected by the Central Government.
The buyer must pay the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% of
the sale value or Transfer value (“NPOP”). If the Sale value is higher than the NPOP, then the sale
value will be used. If the sale value is lower than the NPOP, then the NPOP value will be used.
Tax to the local government is paid at the Local Government Bank (Bank Badan Usaha Milik
Daerah) and/or another private commercial bank (Article 4.2 of Law No. 7/1983, amended by Law
No. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2.1 and 5.1 of the Director-
General of Taxation Circular No. SE-04/P.J.33/1996 dated August 26, 1996).
The BPHTB Formula: The buyer pays the BPHTB in the amount of 5% x Sale value or Transfer
value (Nilai Perolehan Obyek Pajak or NPOP) minus the Non-Taxable Sale Value (Nilai Perolehan
Obyek Pajak Tidak Kena Pajak or NPOPTKP), which is determined regionally (According to Article
7 of Law No. 20/2000 concerning the amendment of Law No. 21/1997 concerning the Tax on
Acquisition of Land and Building). In Jakarta, the NPOPTKP is Rp. 80,000,000 (according to
Article 5 paragraph 7 of the Regional Decree of Special Province of Jakarta No. 18/2010
concerning the Tax on Acquisition of Land and Building (BPHTB)).
Since January 2017, payment of income tax from the transaction can be conducted online based
on the Director General of Taxation Regulation No.PER-26/PJ/2014 on Electronic Tax Payment
System. However, the procedure couldn't be done in less than a day since UPPRD shall instruct
officers in their respective units to verify the document sent electronically as soon as they received
it through online BPHTB collection system; and validate proof of payment in SSPD BPHTB
immediately upon receipt through BPHTB collection system online.
3 Validation of Transfer Tax payment with the Central Tax Office (Kantor Pelayan Pajak) 3 days no charge
Agency : Central Tax Office (Kantor Pelayan Pajak- KPP)
The seller applies to perform formal verification on income tax payment at the Central Tax Office
(KPP). KPP will issue a formal research certificate that should be presented to the PPAT official as
a requirement for the signature of the land deed. As per Article 5 of Director General of Tax
Regulation No. Per-18/PJ/2017 the authorized official can sign the deed, decision, agreement, or
minutes on the transfer of rights to the land and/or building only after receiving the formal research
certificate. Length of verification until the issuance of the letter is 3 business days according to the
Director General of Tax Regulation No. Per-26/PJ/2018.
This validation is not required for the Tax on Acquisition of Land and Building (BPHTB) since the
Regional tax office collects it directly through online payment (General of Taxation Regulation
No.PER-26/PJ/2014 on Electronic Tax Payment System)
Page 45
4 Execution of sale and purchase of Land Deed by a PPAT official 5 days IDR 26,885,098.82; (1% of
Agency : Land Deed/PPAT Official the property value)
The execution of the sale and purchase of Land Deed is made before Land Officials (who are
often public notaries as well) appointed by the Head of the National Land Office (PPAT) or a local
Head of a District (Camat PPAT), after the taxes in Procedures 3 and 4 have been paid. For
convenience, those payments are usually made by the notary three days before the execution of
the sale-purchase deed. The PPAT obtains an appointment with the Land Office using the online
platform (loket.bpn.go.id) to register the land deed.
The documentation shall include:

(i) Original land certificate
(ii) Evidence of the latest payment of Tax on Land and Building (PBB). Every year, the local PBB
Tax Office issues a tax assessment to landowners. By custom, the buyer usually wants to obtain
the original of the payment of PBB for the past three years and utility bills for the last three
months--though in practice the office will check the previous 10 years. The Land Deed Officer
drawing up the sale and purchase deed will only need to see the most recent PBB while the Land
Office will need a copy of the most recent PBB for registering the land into the name of the new
owner.
(iii) Evidence of payment of Tax on Transfer of Land and Building (Transfer Tax)
(iv) Proof of deed of Company Establishment which was already authorized by the Ministry of
Justice
(v)Company Tax-Registration Numbers (NPWP) of the seller and the purchaser
(vi) Deed of Establishment and its amendments of both the seller and purchaser;
(vii) Corporate approvals of the seller to dispose of the land and the purchaser to acquire the
property as required by the Articles of Association of both the seller and purchaser
(viii) Advise Planning from the City Administration Institution
(ix) Permit for Building Establishment
5 Registration of the Land Deed at the local Land Office under the name of the buyer 15 days IDR 2,750,510; (1/1000 of
Agency : Land Office the property value + Rp.
Registration of the Land Deed at the local Land Office to have the purchaser’s name registered 50,000 (administrative fee)
and recorded in the land certificate. At the latest of 7 (seven) days as of the signing date of the + Stamp duty of Rp. 6,000
sale and purchase of Land Deed, the notary submits such deed including its supporting
per document (2 required))
documents to the Land Office, but in practice, the wait is much longer because of the backlog.
(Article 40 sub 1 of Government Regulation No. 24/1997 concerning the Land Registration). In
theory, the registration process should be completed within the 5 days statutory time limit, but in
practice, it could take up to 15 days. The Land Office crosses out the name of the previous owner
and inserts the name of the buyer, stamps and signs it.
6 Registration of the Land Deed at the Jakarta Regional Government Revenue Office under 1 day no charge
the name of a buyer
Agency : Jakarta Regional Government Revenue Office ("Regional Tax Office")
In connection with the registration of the Land Deed at the Tax on Land and Building Office, the
change of ownership must be registered with the Tax Office. The taxpayer should report manually
to the Tax Office about the transfer of land title.
Page 46
Details – Registering Property in Jakarta – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 15.5
Reliability of infrastructure index (0-8) 5.0
Type of land registration system in the economy: Title Registration

System
What is the institution in charge of immovable property registration? Badan Pertanahan

Nasional (BPN,
National Land
Agency) / Kantor
Pertanahan (Land
Office)
In what format are past and newly issued land records kept at the immovable property registry of the largest Paper 0.0
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Badan Pertahanan
Nasional/Land Office
(Kantor Kota
Administrasi Jakarta
Pusat)
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Computer/Fully digital 2.0
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1.0
(geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Different databases 1.0
kept in a single database, in different but linked databases or in separate databases? but linked
Do the immovable property registration agency and cadastral or mapping agency use the same identification Yes 1.0
number for properties?
Transparency of information index (0–6) 3.0
Who is able to obtain information on land ownership at the agency in charge of immovable property registration Only intermediaries 0.0
in the largest business city? and interested parties
Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5
and if so, how?
Link for online access: https://www.atrbpn.go

.id/Publikasi/Standar-
Prosedur
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property Yes, online 0.5
registration in the largest business city made publicly available–and if so, how?

Prosedur
Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?

Prosedur
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0
in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property Yes 0.5
registration agency?
Number of property transfers in the largest business city in 2018: 44.6

Page 47
Who is able to consult maps of land plots in the largest business city? Only intermediaries 0.0
and interested parties
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5

Prosedur
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and Yes, online 0.5
if so, how does it communicate the service standard?

Prosedur
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0
cadastral or mapping agency?
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the largest business city formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Are all privately held land plots in the economy mapped? No 0.0
Land dispute resolution index (0–8) 7.5
Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5
them opposable to third parties?
Legal basis: Article 37, paragraph

1 Government
Regulation (PP) No.
24/1997 “land
registration” The sale
purchase should be
defined as legal
action in the form of a
permanent
conveyance of land
by the seller to the
purchaser. If the sale
purchase is
completed, then
registration is simply
the task of entering
the transaction to the
Land Book and the
issuance of a
certificate. The
registration becomes
strong evidence of
the land
conveyancing and is
also public
information Article 19
of Law No. 5/1960
"To ensure the legal
certainty by the
Government shall be
conducted land
registration
throughout the
territory of Republic
of Indonesia subject
to the provisions
regulated by the
Government
Regulation"
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Page 48
Type of guarantee: State guarantee
Legal basis: The Government

Regulation on Land
Registration (No. 24
of 1997) proclaims
that too guarantee
legal certainty the
Government is to
implement land
registration
throughout the whole
territory of the
Republic of Indonesia
in accordance with
provisions which are
to be stipulated by
way of a Government
Regulation. (2) The
registration referred
to in paragraph 1 of
this Article includes
the following: a. the
surveying, mapping,
and recording of land
in a book; b.
registration of rights
on land and of
transfers of the said
rights; and c. granting
documentary
instruments of
evidence of right,
which shall serve as
strong instruments of
evidence. (3) Land
registration is to be
implemented by
taking into account
the condition of the
State and of the
society, the needs for
socio-economic
movements, and the
possibility of
implementing it,
according to the
Minister of Agrarian
Affairs’
considerations. (4)
The fees pertaining to
the land registration
referred to in
paragraph (1) shall
be regulated by way
of a Government
Regulation with a
provision exempting
the financially
incapable from the
said fees.
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
Legal basis:
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5
checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary;
Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;
Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0
Page 49
What is the Court of first instance in charge of a case involving a standard land dispute between two local District Court or
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located Arbitration
in the largest business city?
How long does it take on average to obtain a decision from the first-instance court for such a case (without Less than a year 3.0
appeal)?
Are there publicly available statistics on the number of land disputes at the economy level in the first instance Yes 0.5
court?
Number of land disputes in the economy in 2018: Around 1.861 cases
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
Page 50
Registering Property - Surabaya

Cost (% of property value) 8.0 4.5 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 15.5 16.2 23.2 None in 2018/19
Figure – Registering Property in Surabaya – Score
58.3 81.3 46.9 51.7

Quality of the land administration index
Figure – Registering Property in Surabaya and comparator economies – Ranking and Score
DB 2020 Registering Property Score
0 100
60.2: Jakarta
59.6: Surabaya
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of
Page 51
Figure – Registering Property in Surabaya – Procedure, Time and Cost
Time (days) Cost (% of property value)

40 8
35 7
Cost (% of property value)

30 6
Time (days)
25 5
20 4
15 3
10 2
5 1
0 0
1 2 3 4 5 6
Procedures (number)
Page 52
Figure – Registering Property in Surabaya and comparator economies – Measure of Quality
30 26.5
25
24.0
Index score
20
19.0
15.5 15.5 16.2
15 12.5
10

Asia
&
Pacific
Details – Registering Property in Surabaya – Procedure, Time and Cost
1 Land certificate examination at the local Land Office (BPN) 3 days IDR 50,000
Agency : Land Office
A land certificate examination is carried out by a Land Deed Official. If the land book concerned is
available at the Land Office, it usually takes 1 day. However, sometimes the land book is
unavailable, misplaced or being used by another division of the Land Office, so then the
examination process will be pending, and it usually takes a few days to obtain the information from
the Land Office. The Regulation of the National Land Agency Number 1 of 2010 stipulates the
requirements to examine the land certificate:
a. Land Ownership Certificate;
b. Copy of the applicant’s identification or its proxy;
c. Letter of request from the Land Deed Official (PPAT) for the transfer of rights by the Deed of the
Land Deed Officer.
The land title search would also involve a check at the local City Planning Office, located at the
local government office, to determine the intended use of the said plot of land, whether for
residences, industry or green belt. No written statement is given, but a note made on the
certificate saying 'Has been examined and according to the Land Registry/ Land Book at the Land
Office, dated_______, time ________' and initialed by the officer at the Land Office.
2 Payment of the transfer and acquisition tax 1 day IDR 197,888,241.12;

Agency : Commercial Bank (Seller pays 2.5% of
The seller pays the Tax on Transfer of Land and Building (Transfer Tax) in the amount of 2.5% property value and buyer
which is calculated on the transfer value. Taxes to the central government can be paid at any pays 5% of the property
commercial bank.
minus Rp. 75 million,
which is tax-free)
The buyer pays the Tax on Acquisition of Land and Building (BPHTB) in the amount of 5% x
[(transfer value or sale value or Nilai Perolehan Obyek Pajak (NPOP)) – (non-taxable sale value
or Nilai Perolehan Obyek Pajak Tidak Kena Pajak (NPOPTKP))]. According to the law on Local
Tax (Law No. 28/2009), the BPHTB belongs to the local government. Taxes to the local
government are paid at a Local Government Bank (as per Article 4.2 of Law No. 7/1983, amended
by Law No. 10/1994 and Law 17/2000 concerning Income Tax and Parts 2.1 and 5.1 of the
Director General of Taxation Circular No. SE-04/P.J.33/1996 dated August 26, 1996). Article 87
point 4 of the Law sets a minimum value for the NPOPTKP at IDR 60,000,000.
For Surabaya, the local regulation (Perda No. 11/2010) stipulates a NPOPTKP of IDR 75,000,000.
3 Validation of Transfer Tax payment with the Central Tax Office (Kantor Pelayan Pajak) 3 days no charge
Agency : Central Tax Office (Kantor Pelayan Pajak- KPP)
The seller applies to perform formal verification on income tax payment at the Central Tax Office
(KPP). KPP will issue a formal research certificate that should be presented to the PPAT official as
a requirement for the signature of the land deed. As per Article 5 of Director General of Tax
Regulation No. Per-18/PJ/2017 the authorized official can sign the deed, decision, agreement, or
minutes on the transfer of rights to the land and/or building only after receiving the formal research
certificate. Length of verification until the issuance of the letter is 3 business days according to the
Director General of Tax Regulation No. Per-26/PJ/2018.
Page 53
4 Execution of sale and purchase agreement of Land Deed by a Land Deed Official (PPAT) 2 days IDR 13,442,549.41; (0.5%
appointed by the Head of the National Land Office or a local Head of a Sub-District of property value)
Agency : Land deed official
The execution of the sale and purchase of the Land Deed is made before Land Officials, namely a
Land Deed Official (PPAT) appointed by the Head of the National Land Office after the taxes in
procedures 3 and 4 have been paid. The documentation shall include:
a. Original land certificate;
b. Evidence of the latest payment of Tax on Land and Building (PBB). Every year, the local PBB
Tax Office issues a tax assessment to landowners. By custom, the buyer usually wants to obtain
the original of the payment of PBB for the past three years and utility bills for the last three
months--though in practice the office will check the last 10 years. The Land Deed Officer drawing
up the sale and purchase deed will only need to see the most recent PBB while the Land Office
will need a copy of the most recent PBB for registering the land into the name of the new owner;
c. Evidence of payment of the Tax on Transfer of Land and Building (Transfer Tax) (obtained in
Procedure 2);
d. Proof of payment of the Tax on Acquisition of Land and Building (BPHTB) (obtained in
Procedure 3);
e. Evidence of deed of Company Establishment which was already authorized by the Ministry of
Law and Human Rights;
f. Company Tax-Registration Numbers (NPWP) of the seller and the purchaser
g. Deed of Establishment and its amendments of both the seller and purchaser;
h. Corporate approvals of the seller to dispose of the land and the purchaser to acquire the land
as required in the Articles of Association of both the seller and purchaser;
i. Advise Planning from the City Administration Institution;
j. Permit for Building Establishment. (h) Copy of buyer and seller’s identification cards
5 Registration of the Land Deed at the local Land Office (BPN) under the name of the buyer 30 days IDR 2,750,510; (1/1000 of
Agency : Land Office the property value + Rp.
After the buyer submits the registration of the Land Deed, she/he leaves it there and has to return 50,000 (administrative fee)
some days later to pick up the Land Deed that has been registered under the buyer's name. In + Stamp duty of Rp. 6,000
between submission of the deed and pick-up, the buyer has to phone the Officer at the Land
per document (2 required))
Office to ask about the progress. The Land Office crosses out the name of the previous owner and
inserts the name of the buyer, stamps and signs it.
6 Registration of the Land Deed at the Surabaya Regional Government Revenue Office under 1 day no charge
the name of a buyer
Agency : Regional Government Revenue Office
In connection with the registration of the Land Deed, the change of ownership must be registered
with the Land and Building Tax Office (PBB). Surabaya Regional Government Revenue Office.
The taxpayer reports the transfer of land title. He must present a copy of his identification card and
the new land deed.
Page 54
Details – Registering Property in Surabaya – Measure of Quality
Answer Score
Quality of the land administration index (0-30) 15.5
Reliability of infrastructure index (0-8) 5.0
Type of land registration system in the economy: Title Registration

System
What is the institution in charge of immovable property registration? Badan Pertanahan

Nasional (BPN,
National Land
Agency) / Kantor
Pertanahan (Land
Office)
In what format are past and newly issued land records kept at the immovable property registry of the largest Paper 0.0
business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, No 0.0
restrictions and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Land Office (Kantor
Pertanahan)
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business Computer/Fully digital 2.0
city of the economy—in a paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing cadastral information Yes 1.0
(geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency Different databases 1.0
kept in a single database, in different but linked databases or in separate databases? but linked
Do the immovable property registration agency and cadastral or mapping agency use the same identification Yes 1.0
number for properties?
Transparency of information index (0–6) 3.0
Who is able to obtain information on land ownership at the agency in charge of immovable property registration Only intermediaries 0.0
in the largest business city? and interested parties
Is the list of documents that are required to complete any type of property transaction made publicly available– Yes, online 0.5
and if so, how?

Prosedur
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property Yes, online 0.5
registration in the largest business city made publicly available–and if so, how?

.id/Publikasi/STATIST
IK/DATA-PERALIHAN
Does the agency in charge of immovable property registration agency formally commit to deliver a legally Yes, online 0.5
binding document that proves property ownership within a specific timeframe –and if so, how does it
communicate the service standard?

Prosedur
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the agency No 0.0
in charge of immovable property registration?
Are there publicly available official statistics tracking the number of transactions at the immovable property Yes 0.5
registration agency?
Number of property transfers in the largest business city in 2018:
Who is able to consult maps of land plots in the largest business city? Only intermediaries 0.0
and interested parties
Page 55
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, online 0.5

Prosedur
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and Yes, online 0.5
if so, how does it communicate the service standard?

Prosedur
Is there a specific and independent mechanism for filing complaints about a problem that occurred at the No 0.0
cadastral or mapping agency?
Geographic coverage index (0–8) 0.0
Are all privately held land plots in the largest business city formally registered at the immovable property No 0.0
registry?
Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
Are all privately held land plots in the largest business city mapped? No 0.0
Are all privately held land plots in the economy mapped? No 0.0
Land dispute resolution index (0–8) 7.5
Does the law require that all property sale transactions be registered at the immovable property registry to make Yes 1.5
them opposable to third parties?
Legal basis: Article 37, paragraph

1 Government
Regulation (PP) No.
24/1997 “land
registration” The sale
purchase should be
defined as legal
action in the form of a
permanent
conveyance of land
by the seller to the
purchaser. If the sale
purchase is
completed, then
registration is simply
the task of entering
the transaction to the
Land Book and the
issuance of a
certificate. The
registration becomes
strong evidence of
the land
conveyancing and is
also public
information Article 19
of Law No. 5/1960
"To ensure the legal
certainty by the
Government shall be
conducted land
registration
throughout the
territory of Republic
of Indonesia subject
to the provisions
regulated by the
Government
Regulation"
Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5
Type of guarantee: State guarantee
Page 56
Legal basis: The Government

Regulation on Land
Registration (No. 24
of 1997) proclaims
that too guarantee
legal certainty the
Government is to
implement land
registration
throughout the whole
territory of the
Republic of Indonesia
in accordance with
provisions which are
to be stipulated by
way of a Government
Regulation. (2) The
registration referred
to in paragraph 1 of
this Article includes
the following: a. the
surveying, mapping,
and recording of land
in a book; b.
registration of rights
on land and of
transfers of the said
rights; and c. granting
documentary
instruments of
evidence of right,
which shall serve as
strong instruments of
evidence. (3) Land
registration is to be
implemented by
taking into account
the condition of the
State and of the
society, the needs for
socio-economic
movements, and the
possibility of
implementing it,
according to the
Minister of Agrarian
Affairs’
considerations. (4)
The fees pertaining to
the land registration
referred to in
paragraph (1) shall
be regulated by way
of a Government
Regulation with a
provision exempting
the financially
incapable from the
said fees.
Is there a is a specific, out-of-court compensation mechanism to cover for losses incurred by parties who No 0.0
engaged in good faith in a property transaction based on erroneous information certified by the immovable
property registry?
Legal basis:
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., Yes 0.5
checking the compliance of contracts with requirements of the law)?
If yes, who is responsible for checking the legality of the documents? Registrar; Notary;
Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
If yes, who is responsible for verifying the identity of the parties? Registrar; Notary;
Is there a national database to verify the accuracy of government issued identity documents? Yes 1.0
Page 57
What is the Court of first instance in charge of a case involving a standard land dispute between two local District Court
businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located
in the largest business city?
How long does it take on average to obtain a decision from the first-instance court for such a case (without Less than a year 3.0
appeal)?
Are there publicly available statistics on the number of land disputes at the economy level in the first instance Yes 0.5
court?
Number of land disputes in the economy in 2018: 14.0
Equal access to property rights index (-2–0) 0.0
Do unmarried men and unmarried women have equal ownership rights to property? Yes
Do married men and married women have equal ownership rights to property? Yes 0.0
Page 58
Getting Credit
This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most
recent round of data collection for the project was completed in May 2019. See the methodology for more information.
Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and
lenders with respect to secured transactions through 2 sets of indicators. The depth of credit
• Rights of borrowers and lenders through collateral laws (0-10) information index measures rules and practices affecting the coverage, scope and accessibility of
• Protection of secured creditors’ rights through bankruptcy laws credit information available through a credit registry or a credit bureau. The strength of legal rights
(0-2) index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers
and lenders and thus facilitate lending. For each economy it is first determined whether a unitary
Depth of credit information index (0–8) secured transactions system exists. Then two case scenarios, case A and case B, are used to
• Scope and accessibility of credit information distributed by determine how a nonpossessory security interest is created, publicized and enforced according to
credit bureaus and credit registries (0-8) the law. Special emphasis is given to how the collateral registry operates (if registration of security
interests is possible). The case scenarios involve a secured borrower, company ABC, and a
Credit bureau coverage (% of adults) secured lender, BizBank.
• Number of individuals and firms listed in largest credit bureau In some economies the legal framework for secured transactions will allow only case A or case B
as a percentage of adult population
(not both) to apply. Both cases examine the same set of legal provisions relating to the use of
Credit registry coverage (% of adults) movable collateral.
• Number of individuals and firms listed in credit registry as a Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:
percentage of adult population
- ABC is a domestic limited liability company (or its legal equivalent).
- ABC has up to 50 employees.
- ABC has its headquarters and only base of operations in the economy’s largest business city. For
11 economies the data are also collected for the second largest business city.
- Both ABC and BizBank are 100% domestically owned.
The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants
BizBank a nonpossessory security interest in one category of movable assets, for example, its
machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In
economies where the law does not allow nonpossessory security interests in movable property,
ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for
nonpossessory security interests).
In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any
charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of
ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.
Page 59
Getting Credit - Jakarta

Strength of legal rights index (0-12) 6 7.1 6.1 12 (5 Economies)
Depth of credit information index (0-8) 8 4.5 6.8 8 (53 Economies)
Credit registry coverage (% of adults) 30.9 16.6 24.4 100.0 (2 Economies)
Credit bureau coverage (% of adults) 40.4 23.8 66.7 100.0 (14 Economies)
Figure – Getting Credit in Jakarta – Score
70.0
Score - Getting Credit
Figure – Getting Credit in Jakarta and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
70.0: Jakarta
70.0: Surabaya
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Page 60
Figure – Legal Rights in Jakarta and comparator economies
8 7.1
7 7
7
6 6
Index Score
6
5
4
4
3
2
1
1
0

Asia
&
Pacific
Page 61
Details – Legal Rights in Jakarta
Strength of legal rights index (0-12) 6
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No
to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description Yes
of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of No
collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the Yes
original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an Yes
electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third Yes
party?
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law Yes
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell No
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Figure – Credit Information in Jakarta and comparator economies
9 8 8 8 8
8 7 7
7
Index Score
6
5 4.5
4
3
2
1
0

Asia
&
Pacific
Page 62
Details – Credit Information in Jakarta
Depth of credit information index (0-8) Credit bureau Credit registry Score
Are data on both firms and individuals distributed? Yes Yes 1
Are both positive and negative credit data distributed? Yes Yes 1
Are data from retailers or utility companies - in addition to data from banks and Yes No 1
financial institutions - distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries Yes No 1
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1
By law, do borrowers have the right to access their data in the credit bureau or Yes Yes 1
credit registry?
Can banks and financial institutions access borrowers’ credit information online Yes Yes 1
(for example, through an online platform, a system-to-system connection or
both)?
Are bureau or registry credit scores offered as a value-added service to help Yes No 1
banks and financial institutions assess the creditworthiness of borrowers?
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Coverage Credit bureau Credit registry
Number of individuals 72,475,666 55,506,693
Number of firms 474,187 298,061
Total 72,949,853 55,804,754
Percentage of adult population 40.4 30.9
Page 63
Getting Credit - Surabaya

Strength of legal rights index (0-12) 6 7.1 6.1 12 (5 Economies)
Depth of credit information index (0-8) 8 4.5 6.8 8 (53 Economies)
Credit registry coverage (% of adults) 30.9 16.6 24.4 100.0 (2 Economies)
Credit bureau coverage (% of adults) 40.4 23.8 66.7 100.0 (14 Economies)
Figure – Getting Credit in Surabaya – Score
70.0
Score - Getting Credit
Figure – Getting Credit in Surabaya and comparator economies – Ranking and Score
DB 2020 Getting Credit Score
0 100
70.0: Jakarta
70.0: Surabaya
Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the
strength of legal rights index and the depth of credit information index.
Page 64
Figure – Legal Rights in Surabaya and comparator economies
8 7.1
7 7
7
6 6
Index Score
6
5
4
4
3
2
1
1
0

Asia
&
Pacific
Page 65
Details – Legal Rights in Surabaya
Strength of legal rights index (0-12) 6
Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and enforcement of functional equivalents No
to security interests in movable assets exist in the economy?
Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without requiring a specific description Yes
of collateral?
Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a specific description of No
collateral?
May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and replacements of the Yes
original assets?
Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be secured between parties; Yes
and can the collateral agreement include a maximum amount for which the assets are encumbered?
Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by asset type, with an Yes
electronic database indexed by debtor's name?
Does a notice-based collateral registry exist in which all functional equivalents can be registered? No
Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed online by any interested third Yes
party?
Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency procedure? No
Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? No
Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization procedure? Does the law Yes
protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it?
Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow the secured creditor to sell No
the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt?
Figure – Credit Information in Surabaya and comparator economies
9 8 8 8 8
8 7 7
7
Index Score
6
5 4.5
4
3
2
1
0

Asia
&
Pacific
Page 66
Details – Credit Information in Surabaya
Depth of credit information index (0-8) Credit bureau Credit registry Score
Are data on both firms and individuals distributed? Yes Yes 1
Are both positive and negative credit data distributed? Yes Yes 1
Are data from retailers or utility companies - in addition to data from banks and Yes No 1
financial institutions - distributed?
Are at least 2 years of historical data distributed? (Credit bureaus and registries Yes No 1
that distribute more than 10 years of negative data or erase data on defaults as
soon as they are repaid obtain a score of 0 for this component.)
Are data on loan amounts below 1% of income per capita distributed? Yes Yes 1
By law, do borrowers have the right to access their data in the credit bureau or Yes Yes 1
credit registry?
Can banks and financial institutions access borrowers’ credit information online Yes Yes 1
(for example, through an online platform, a system-to-system connection or
both)?
Are bureau or registry credit scores offered as a value-added service to help Yes No 1
banks and financial institutions assess the creditworthiness of borrowers?
Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult
population, the total score on the depth of credit information index is 0.
Coverage Credit bureau Credit registry
Number of individuals 72,475,666 55,506,693
Number of firms 474,187 298,061
Total 72,949,853 55,804,754
Percentage of adult population 40.4 30.9
Page 67
Protecting Minority Investors
This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights,
governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed
in May 2019. See the methodology for more information.
• Extent of disclosure index (0–10): Disclosure, review, and To make the data comparable across economies, a case study uses several assumptions about
approval requirements for related-party transactions
the business and the transaction.
• Extent of director liability index (0–10): Ability of minority
shareholders to sue and hold interested directors liable for The business (Buyer):
prejudicial related-party transactions; Available legal - Is a publicly traded corporation listed on the economy’s most important stock exchange.
remedies (damages, disgorgement of profits, disqualification - Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of
from managerial position(s) for one year or more, rescission of Buyer where permitted, even if this is not specifically required by law.
the transaction) - Has a supervisory board in economies with a two-tier board system on which Mr. James
• Ease of shareholder suits index (0–10): Access to internal appointed 60% of the shareholder-elected members.
corporate documents; Evidence obtainable during trial and - Has not adopted bylaws or articles of association that go beyond the minimum requirements.
allocation of legal expenses Does not follow codes, principles, recommendations or guidelines that are not mandatory.
- Is a manufacturing company with its own distribution network.
• Extent of conflict of interest regulation index (0-30): Sum of
the extent of disclosure, extent of director liability and ease of The transaction involves the following details:
shareholder suits indices
- Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to
• Extent of shareholder rights index (0-6): Shareholders’ rights Buyer’s five-member board.
and role in major corporate decisions - Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores.
Seller recently closed a large number of its stores.
• Extent of ownership and control index (0-7): Governance - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand Buyer’s
safeguards protecting shareholders from undue board control
distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of
and entrenchment
Buyer’s assets and is higher than the market value.
• Extent of corporate transparency index (0-7): Corporate - The proposed transaction is part of the company’s principal activity and is not outside the
transparency on ownership stakes, compensation, audits and authority of the company.
financial prospects - Buyer enters into the transaction. All required approvals are obtained, and all required disclosures
• Extent of shareholder governance index (0–20): Sum of the made—that is, the transaction was not entered into fraudulently.
extent of shareholders rights, extent of ownership and control - The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and
and extent of corporate transparency indices directors that approved the transaction.
• Strength of minority investor protection index (0–50): Sum

of the extent of conflict of interest regulation and extent of
shareholder governance indices
Page 68
Protecting Minority Investors - Jakarta
Stock exchange information
Stock exchange Indonesia Stock Exchange
Stock exchange URL http://www.idx.co.id
Listed firms with equity securities 341

Extent of disclosure index (0-10) 10.0 5.9 6.5 10 (13 Economies)
Extent of director liability index (0-10) 5.0 5.2 5.3 10 (3 Economies)
Ease of shareholder suits index (0-10) 2.0 6.7 7.3 10 (Djibouti)
Extent of shareholder rights index (0-6) 5.0 2.0 4.7 6 (19 Economies)
Extent of ownership and control index (0-7) 6.0 2.4 4.5 7 (9 Economies)
Extent of corporate transparency index (0-7) 7.0 2.6 5.7 7 (13 Economies)
Figure – Protecting Minority in Jakarta – Score
70.0
Score - Protecting Minority Investors
Figure – Protecting Minority Investors in Jakarta and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
70.0: Jakarta
70.0: Surabaya
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Page 69
Figure – Protecting Minority Investors in Jakarta and comparator economies – Measure of Quality
Jakarta 7 5 10 6 5 2
China 6 4 10 6 5 5
Malaysia 6 9 10 6 5 8
Philippines 4 4 9 5 1 7
Surabaya 7 5 10 6 5 2
Thailand 6 7 10 6 5 9
OECD high income 5.6 5.6 6.6 4.3 4.5 7.4
East Asia & Pacific 3.1 5.1 6.4 2.9 2.4 6.3
0 5 10 15 20 25 30 35 40 45 50
Sub-Indicator Score
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
Page 70
Details – Protecting Minority Investors in Jakarta – Measure of Quality
Answer Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10) 10.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0
excluding interested
parties
Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0
material facts
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0
transaction and on
the conflict of interest
Must Buyer immediately disclose the transaction to the public? (0-2) Disclosure on the 2.0
transaction and on
Extent of director liability index (0-10) 5.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0
Buyer? (0-1)
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Liable if negligent 1.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) Yes 1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) No 0.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0
Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair or 2.0
prejudicial
Ease of shareholder suits index (0-10) 2.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? Yes 1.0
(0-1)
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) No 0.0
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) No 0.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0
questions only
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2) At the discretion of 0.0
the court
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6) 5.0
Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? Yes 1.0
Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares? No 0.0
Do shareholders elect and dismiss the external auditor? Yes 1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0
Extent of ownership and control index (0-7) 6.0
Page 71
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? Yes 1.0
Must the board of directors include independent and nonexecutive board members? Yes 1.0
Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0
Must the board of directors include a separate audit committee exclusively comprising board members? No 0.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? Yes 1.0
Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0
Extent of corporate transparency index (0-7) 7.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? Yes 1.0
Must Buyer disclose information about board members’ primary employment and directorships in other Yes 1.0
companies?
Must Buyer disclose the compensation of individual managers? Yes 1.0
Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0
Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0
Must Buyer disclose its audit reports to the public? Yes 1.0
Page 72
Protecting Minority Investors - Surabaya
Stock exchange information
Stock exchange Indonesia Stock Exchange
Stock exchange URL http://www.idx.co.id
Listed firms with equity securities 341

Extent of disclosure index (0-10) 10.0 5.9 6.5 10 (13 Economies)
Extent of director liability index (0-10) 5.0 5.2 5.3 10 (3 Economies)
Ease of shareholder suits index (0-10) 2.0 6.7 7.3 10 (Djibouti)
Extent of shareholder rights index (0-6) 5.0 2.0 4.7 6 (19 Economies)
Extent of ownership and control index (0-7) 6.0 2.4 4.5 7 (9 Economies)
Extent of corporate transparency index (0-7) 7.0 2.6 5.7 7 (13 Economies)
Figure – Protecting Minority in Surabaya – Score
70.0
Score - Protecting Minority Investors
Figure – Protecting Minority Investors in Surabaya and comparator economies – Ranking and Score
DB 2020 Protecting Minority Investors Score
0 100
70.0: Jakarta
70.0: Surabaya
Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are
the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index.
Page 73
Figure – Protecting Minority Investors in Surabaya and comparator economies – Measure of Quality
Surabaya 7 5 10 6 5 2
China 6 4 10 6 5 5
Jakarta 7 5 10 6 5 2
Malaysia 6 9 10 6 5 8
Philippines 4 4 9 5 1 7
Thailand 6 7 10 6 5 9
OECD high income 5.6 5.6 6.6 4.3 4.5 7.4
East Asia & Pacific 3.1 5.1 6.4 2.9 2.4 6.3
0 5 10 15 20 25 30 35 40 45 50
Sub-Indicator Score
Extent of corporate transparency index (0-7) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-7)
Extent of shareholder rights index (0-6) Ease of shareholder suits index (0-10)
Page 74
Details – Protecting Minority Investors in Surabaya – Measure of Quality
Answer Score
Extent of conflict of interest regulation index (0-30)
Extent of disclosure index (0-10) 10.0
Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0
excluding interested
parties
Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0
Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of all 2.0
material facts
Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 2.0
transaction and on
Must Buyer immediately disclose the transaction to the public? (0-2) Disclosure on the 2.0
transaction and on
Extent of director liability index (0-10) 5.0
Can shareholders representing 10% of Buyer's share capital sue for the damage the transaction caused to Yes 1.0
Buyer? (0-1)
Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0-2) Liable if negligent 1.0
Can shareholders hold the other directors liable for the damage the transaction caused to Buyer? (0-2) Not liable 0.0
Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by shareholders? (0-1) Yes 1.0
Must Mr. James repay profits made from the transaction upon a successful claim by shareholders? (0-1) No 0.0
Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0
Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair or 2.0
prejudicial
Ease of shareholder suits index (0-10) 2.0
Before suing, can shareholders representing 10% of Buyer's share capital inspect the transaction documents? Yes 1.0
(0-1)
Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) No 0.0
Can the plaintiff request categories of documents from the defendant without identifying specific ones? (0-1) No 0.0
Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0
questions only
Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0
Can shareholder plaintiffs recover their legal expenses from the company? (0-2) At the discretion of 0.0
the court
Extent of shareholder governance index (0-20)
Extent of shareholder rights index (0-6) 5.0
Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0
Can shareholders representing 10% of Buyer's share capital call for a meeting of shareholders? Yes 1.0
Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0
Do shareholders automatically receive preemption rights every time Buyer issues new shares? No 0.0
Do shareholders elect and dismiss the external auditor? Yes 1.0
Are changes to the rights of a class of shares only possible if the holders of the affected shares approve? Yes 1.0
Extent of ownership and control index (0-7) 6.0
Page 75
Is it forbidden to appoint the same individual as CEO and chairperson of the board of directors? Yes 1.0
Must the board of directors include independent and nonexecutive board members? Yes 1.0
Can shareholders remove members of the board of directors without cause before the end of their term? Yes 1.0
Must the board of directors include a separate audit committee exclusively comprising board members? No 0.0
Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Buyer? Yes 1.0
Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0
Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0
Extent of corporate transparency index (0-7) 7.0
Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? Yes 1.0
Must Buyer disclose information about board members’ primary employment and directorships in other Yes 1.0
companies?
Must Buyer disclose the compensation of individual managers? Yes 1.0
Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0
Can shareholders representing 5% of Buyer’s share capital put items on the general meeting agenda? Yes 1.0
Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0
Must Buyer disclose its audit reports to the public? Yes 1.0
Page 76
Paying Taxes
This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of
paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was
completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.
Tax payments for a manufacturing company in 2018 (number Using a case scenario, Doing Business records taxes and mandatory contributions a medium size
per year adjusted for electronic and joint filing and payment) company must pay in a year, and measures the administrative burden of paying taxes,
contributions and dealing with postfiling processes. Information is also compiled on frequency of
• Total number of taxes and contributions paid or withheld, filing and payments, time taken to comply with tax laws, time taken to comply with the
including consumption taxes (value added tax, sales tax or
requirements of postfiling processes and time waiting.
goods and service tax)
• Method and frequency of filing and payment To make data comparable across economies, several assumptions are used:
- TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces
Time required to comply with 3 major taxes (hours per year) ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the
• Collecting information, computing tax payable second year of operation (calendar year 2018). Taxes and mandatory contributions are measured
at all levels of government.
• Preparing separate tax accounting books, if required
• Completing tax return, filing with agencies The VAT refund process:
- In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times
• Arranging payment or withholding income per capita of the economy. Sales are equally spread per month (1,050 times income per
capita divided by 12) and cost of goods sold are equally expensed per month (875 times income
Total tax and contribution rate (% of commercial profits)
per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred
• Profit or corporate income tax in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs,
sales and the machine and the tax reporting period is every month. Input VAT will exceed Output
• Social contributions, labor taxes paid by employer
VAT in June 2018.
• Property and property transfer taxes
The corporate income tax audit process:
• Dividend, capital gains, financial transactions taxes
- An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates,
• Waste collection, vehicle, road and other taxes or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a
corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the
Postfiling Index
tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax
• Time to comply with VAT refund (hours) liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual
tax return, but within the tax assessment period.
• Time to obtain VAT refund (weeks)
• Time to comply with a corporate income tax correction (hours)
• Time to complete a corporate income tax correction (weeks)
Page 77
Paying Taxes - Jakarta

Payments (number per year) 26 20.6 10.3 3 (2 Economies)
Time (hours per year) 191 173.0 158.8 49 (3 Economies)
Total tax and contribution rate (% of profit) 30.1 33.6 39.9 26.1 (33 Economies)
Postfiling index (0-100) 68.8 56.4 86.7 None in 2018/19
Figure – Paying Taxes in Jakarta – Score
61.7 78.1 94.5 68.8
Payments Time Total tax and contribution rate Postfiling index
Figure – Paying Taxes in Jakarta and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
75.8: Jakarta
75.8: Surabaya
70.1: China (Rank: 105)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Page 78
Figure – Paying Taxes in Jakarta and comparator economies – Measure of Quality
80 73.4
68.8 68.8
70
56.4
Index score
60 51.0
50.0 50.0
50
40
30
20
10
0

Asia
&
Pacific
Page 79
Details – Paying Taxes in Jakarta
Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR
mandatory (number) Payments rate contribution
contribution rate (% of
profit)
Corporate 13.0 69.0 12.5% - 25% * taxable income 16.63

income tax
Employer paid - 1.0 online 4.24% gross salary 7.04

Social security
contributions
Employer paid - 0.0 online and jointly 4% gross salary 4.51

Health insurance
contributions
Capital gains tax 1.0 2.5% proceed 1.52
Property tax 1.0 0.2% value of the land 0.29

and building
determined by
the government
Vehicle 1.0 1% sales price and 0.08

registration tax weight
Value added tax 4.0 online 66.0 10% transaction value 0.00 not included
(VAT)
Stamp duty 1.0 Rp 6,000 fixed fee 0.00
Employee paid - 0.0 online and jointly 1% gross salary 0.00 withheld
Health insurance
contributions
Employee paid - 4.0 online 56.0 5% - 30% gross salary 0.00 withheld
Payroll tax on
employee
Social security
contributions
Totals 26 191 30.1
Page 80
Details – Paying Taxes in Jakarta – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 18.1
Labor tax and contributions (% of profit) 11.6
Other taxes (% of profit) 0.4
Page 81
Details – Paying Taxes in Jakarta – Measure of Quality
Answer Score
Postfiling index (0-100) 68.8
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? Yes
Restrictions on VAT refund process none
Percentage of cases exposed to a VAT audit (%) 75% - 100%
Is there a mandatory carry forward period? No
Time to comply with VAT refund (hours) 18.0 64.0
Time to obtain VAT refund (weeks) 48.0 14.0
Corporate income tax audits
Does corporate income tax exist? yes
Percentage of cases exposed to a corporate income tax audit (%) 0% - 24%
Time to comply with a corporate income tax correction (hours) 3.0 97.2
Time to complete a corporate income tax correction (weeks) No tax audit per case 100
study scenario
Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Page 82
Paying Taxes - Surabaya

Payments (number per year) 26 20.6 10.3 3 (2 Economies)
Time (hours per year) 191 173.0 158.8 49 (3 Economies)
Total tax and contribution rate (% of profit) 30.1 33.6 39.9 26.1 (33 Economies)
Postfiling index (0-100) 68.8 56.4 86.7 None in 2018/19
Figure – Paying Taxes in Surabaya – Score
61.7 78.1 94.5 68.8
Payments Time Total tax and contribution rate Postfiling index
Figure – Paying Taxes in Surabaya and comparator economies – Ranking and Score
DB 2020 Paying Taxes Score
0 100
75.8: Jakarta
75.8: Surabaya
70.1: China (Rank: 105)
Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for
each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The
threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing
Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.
Page 83
Figure – Paying Taxes in Surabaya and comparator economies – Measure of Quality
80 73.4
68.8 68.8
70
56.4
Index score
60 51.0
50.0 50.0
50
40
30
20
10
0

Asia
&
Pacific
Page 84
Details – Paying Taxes in Surabaya
Tax or Payments Notes on Time (hours) Statutory tax Tax base Total tax and Notes on TTCR
mandatory (number) Payments rate contribution
contribution rate (% of
profit)
Corporate 13.0 69.0 12.5% - 25% * taxable income 16.63

income tax
Employer paid - 1.0 online 4.24% gross salary 7.04

Social security
contributions
Employer paid - 0.0 online and jointly 4% gross salary 4.51

Health insurance
contributions
Capital gains tax 1.0 2.5% proceed 1.52
Property tax 1.0 0.2% value of the land 0.29

and building
determined by
the government
Vehicle 1.0 1% sales price and 0.08

registration tax weight
Value added tax 4.0 online 66.0 10% transaction value 0.00 not included
(VAT)
Stamp duty 1.0 Rp 6,000 fixed fee 0.00
Health Care
contributions
Employee paid - 4.0 online 56.0 5% - 30% gross salary 0.00 withheld
Payroll tax on
employee
Social security
contributions
Totals 26 191 30.1
Page 85
Details – Paying Taxes in Surabaya – Tax by Type
Taxes by type Answer
Profit tax (% of profit) 18.1
Labor tax and contributions (% of profit) 11.6
Other taxes (% of profit) 0.4
Page 86
Details – Paying Taxes in Surabaya – Measure of Quality
Answer Score
Postfiling index (0-100) 68.8
VAT refunds
Does VAT exist? Yes
Does a VAT refund process exist per the case study? Yes
Restrictions on VAT refund process none
Percentage of cases exposed to a VAT audit (%) 75% - 100%
Is there a mandatory carry forward period? No
Time to comply with VAT refund (hours) 18.0 64.0
Time to obtain VAT refund (weeks) 48.0 14.0
Corporate income tax audits
Does corporate income tax exist? yes
Percentage of cases exposed to a corporate income tax audit (%) 0% - 24%
Time to comply with a corporate income tax correction (hours) 3.0 97.2
Time to complete a corporate income tax correction (weeks) No tax audit per case 100
study scenario
Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.
The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction
and time to complete a corporate income tax correction.
N/A = Not applicable.
Page 87
Trading across Borders
Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding
tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or
importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.
Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded
goods and the transactions:
• Obtaining, preparing and submitting documents during
transport, clearance, inspections and port or border handling in
Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as
origin economy
22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively,
• Obtaining, preparing and submitting documents required by suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and
destination economy and any transit economies can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as
24 hours because the actual procedure took 24 hours.
• Covers all documents required by law and in practice, including
electronic submissions of information
Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the
Border compliance costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency
into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire.
• Customs clearance and inspections Contributors are private sector experts in international trade logistics and are informed about
• Inspections by other agencies (if applied to more than 20% of exchange rates.
shipments)
Assumptions of the case study:
• Handling and inspections that take place at the economy’s port - For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in
or border the largest business city of the exporting economy and travels to a warehouse in the largest
business city of the importing economy.
Domestic transport
- It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from
• Loading or unloading of the shipment at the warehouse or its natural import partner—the economy from which it imports the largest value (price times
port/border quantity) of auto parts. It is assumed each economy exports the product of its comparative
advantage (defined by the largest export value) to its natural export partner—the economy that is
• Transport between warehouse and port/border
the largest purchaser of this product. Shipment value is assumed to be $50,000.
• Traffic delays and road police checks while shipment is en - The mode of transport is the one most widely used for the chosen export or import product and
route the trading partner, as is the seaport or land border crossing.
- All electronic information submissions requested by any government agency in connection with
the shipment are considered to be documents obtained, prepared and submitted during the export
or import process.
- A port or border is a place (seaport or land border crossing) where merchandise can enter or
leave an economy.
- Relevant government agencies include customs, port authorities, road police, border guards,
standardization agencies, ministries or departments of agriculture or industry, national security
agencies and any other government authorities.
Page 88
Trading across Borders - Jakarta

Time to export: Border compliance (hours) 51 57.5 12.7 1 (19 Economies)
Cost to export: Border compliance (USD) 207 381.1 136.8 0 (19 Economies)
Time to export: Documentary compliance (hours) 60 55.6 2.3 1 (26 Economies)
Cost to export: Documentary compliance (USD) 130 109.4 33.4 0 (20 Economies)
Time to import: Border compliance (hours) 80 68.4 8.5 1 (25 Economies)
Cost to import: Border compliance (USD) 384 422.8 98.1 0 (28 Economies)
Time to import: Documentary compliance (hours) 106 53.7 3.4 1 (30 Economies)
Cost to import: Documentary compliance (USD) 160 108.4 23.5 0 (30 Economies)
Figure – Trading across Borders in Jakarta – Score
68.6 80.5 65.1 67.5 71.7 68.0 56.1 77.1
Time Cost Time Cost Time Cost Time Cost

to to to to to to to to
export: export: export: export: import: import: import: import:
Border Border Documentary Documentary Border Border Documentary Documentary
compliance compliance compliance compliance compliance compliance compliance compliance
Figure – Trading across Borders in Jakarta and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
69.3: Jakarta
61.3: Surabaya
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Page 89
Figure – Trading across Borders in Jakarta – Time and Cost
Time (hours) Cost (USD)

120 450
384 106
400
100
350
Time (hours)
80
Cost (USD)
80 300
60 250
60 51 207
160 200
40 130 150
100
20
50
0 0
Export Export Import Import

- - - -
Border Documentary Border Documentary
Compliance Compliance Compliance Compliance
Page 90
Details – Trading across Borders in Jakarta
Characteristics Export Import
Product HS 15 : Animal or vegetable fats and oils and their HS 8708: Parts and accessories of motor vehicles
cleavage products; prepared edible fats; animal or
vegetable waxes
Trade partner India Japan
Border Jakarta port Jakarta port
Distance (km) 21 21
Domestic transport time (hours) 3 3
Domestic transport cost (USD) 135 135
Details – Trading across Borders in Jakarta – Components of Border Compliance
Time to Complete (hours) Associated Costs (USD)
Export: Clearance and inspections required by 4.0 60.0

customs authorities

agencies other than customs
Export: Port or border handling 48.0 147.1
Import: Clearance and inspections required by 30.0 110.0

customs authorities

Import: Port or border handling 80.0 274.4
Page 91
Details – Trading across Borders in Jakarta – Trade Documents
Export Import
Bill of lading Bill of lading
Commercial invoice Delivery order
Packing list Cargo release order (SPPB)
Customs export declaration Commercial invoice
SOLAS certificate Insurance documentation
Certificate of origin Packing list
Customs import declaration (PIB)
Terminal handling receipts
SOLAS certificate
Page 92
Trading across Borders - Surabaya

Time to export: Border compliance (hours) 75 57.5 12.7 1 (19 Economies)
Cost to export: Border compliance (USD) 225 381.1 136.8 0 (19 Economies)
Time to export: Documentary compliance (hours) 66 55.6 2.3 1 (26 Economies)
Cost to export: Documentary compliance (USD) 170 109.4 33.4 0 (20 Economies)
Time to import: Border compliance (hours) 168 68.4 8.5 1 (25 Economies)
Cost to import: Border compliance (USD) 376 422.8 98.1 0 (28 Economies)
Time to import: Documentary compliance (hours) 107 53.7 3.4 1 (30 Economies)
Cost to import: Documentary compliance (USD) 180 108.4 23.5 0 (30 Economies)
Figure – Trading across Borders in Surabaya – Score
53.5 78.8 61.5 57.5 40.1 68.7 55.6 74.3
Time Cost Time Cost Time Cost Time Cost

to to to to to to to to
export: export: export: export: import: import: import: import:
Border Border Documentary Documentary Border Border Documentary Documentary
compliance compliance compliance compliance compliance compliance compliance compliance
Figure – Trading across Borders in Surabaya and comparator economies – Ranking and Score
DB 2020 Trading Across Borders Score
0 100
69.3: Jakarta
61.3: Surabaya
Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple
average of the scores for the time and cost for documentary compliance and border compliance to export and import.
Page 93
Figure – Trading across Borders in Surabaya – Time and Cost
Time (hours) Cost (USD)

180 168 376 400
160 350
140 300
Time (hours)
Cost (USD)
120 107
225 250
100
75 170 180 200
80 66
150
60
40 100
20 50
0 0
Export Export Import Import

- - - -
Border Documentary Border Documentary
Compliance Compliance Compliance Compliance
Page 94
Details – Trading across Borders in Surabaya
Characteristics Export Import
Product HS 15 : Animal or vegetable fats and oils and their HS 8708: Parts and accessories of motor vehicles
cleavage products; prepared edible fats; animal or
vegetable waxes
Trade partner India Japan
Border Surabaya port Surabaya port
Distance (km) 15 15
Domestic transport time (hours) 5 5
Domestic transport cost (USD) 138 138
Details – Trading across Borders in Surabaya – Components of Border Compliance
Time to Complete (hours) Associated Costs (USD)

customs authorities

Export: Port or border handling 72.0 165.0

customs authorities

Import: Port or border handling 168.0 266.0
Page 95
Details – Trading across Borders in Surabaya – Trade Documents
Export Import
Bill of Lading Bill of lading
Commercial Invoice Delivery order
Packing List Cargo release order (SPPB)
Customs Export Declaration Commercial invoice
Stacking Permit Insurance documentation
SOLAS certificate Packing list
Certificate of origin Customs import declaration (PIB)
Terminal handling receipt
SOLAS certificate
Page 96
Enforcing Contracts
The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes
index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data
collection was completed in May 2019. See the methodology for more information.
Time required to enforce a contract through the courts The dispute in the case study involves the breach of a sales contract between two domestic
(calendar days) businesses. The case study assumes that the court hears an expert on the quality of the goods in
dispute. This distinguishes the case from simple debt enforcement.
• Time to file and serve the case
• Time for trial and to obtain the judgment To make the data on the time and comparable across economies, several assumptions about the
case are used:
• Time to enforce the judgment - The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both
Cost required to enforce a contract through the courts (% of located in the economy’s largest business city. For 11 economies the data are also collected for the
claim value) second largest business city.
- The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of
• Average attorney fees adequate quality.
• Court costs - The value of the dispute is 200% of the income per capita or the equivalent in local currency of
USD 5,000, whichever is greater.
• Enforcement costs - The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of
income per capita or $5,000 whichever is greater.
Quality of judicial processes index (0-18)
- The Seller requests the pretrial attachment of the defendant’s movable assets to secure the
• Court structure and proceedings (-1-5) claim.
- The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods
• Case management (0-6)
was not adequate.
• Court automation (0-4) - The judge decides in favor of the seller; there is no appeal.
• Alternative dispute resolution (0-3) - The Seller enforces the judgment through a public sale of the Buyer’s movable assets.
Page 97
Enforcing Contracts - Jakarta
Standardized Case
Claim value IDR 99,711,339
Court name Jakarta District Court

Time (days) 390 581.1 589.6 120 (Singapore)
Cost (% of claim value) 74.0 47.2 21.5 0.1 (Bhutan)
Quality of judicial processes index (0-18) 9.0 8.1 11.7 None in 2018/19
Figure – Enforcing Contracts in Jakarta – Score
77.9 16.9 50.0
Time Cost Quality of judicial processes index
Figure – Enforcing Contracts in Jakarta and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
52.1: Surabaya
48.2: Jakarta
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
Page 98
Figure – Enforcing Contracts in Jakarta – Time and Cost
Time (days) Cost (% of claim value)

1200 74.0 80
Cost (% of claim value)

962 70
1000
57.0 60
Time (days)
800 47.2 50
581.1 37.9 589.6
600 496 40
425 31.0 450 420
390 30
400 21.5
16.2 16.9 20
200
10
0 0
China East Jakarta Malaysia OECD Philippines Surabaya Thailand

Asia high
& income
Pacific
Page 99
Figure – Enforcing Contracts in Jakarta and comparator economies – Measure of Quality
Jakarta 2.5 3 0.5 3
China 3 5.5 3 5
Malaysia 2.5 4 2.5 4
Philippines 2.5 1.5 0 3.5
Surabaya 2.5 2 1 3
Thailand 2.5 2 1 3
OECD high income 2.5 3.2 2.4 3.6
East Asia & Pacific 2.2 2.2 1.3 3
0 2 4 6 8 10 12 14 16 18
Sub-Indicator Score
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Jakarta
Indicator
Time (days) 390
Filing and service 60
Trial and judgment 150
Enforcement of judgment 180
Cost (% of claim value) 74.0
Attorney fees 50
Court fees 13
Enforcement fees 11
Quality of judicial processes index (0-18) 9.0
Court structure and proceedings (-1-5) 3.0
Case management (0-6) 3.0
Court automation (0-4) 0.5
Alternative dispute resolution (0-3) 2.5
Page 100
Details – Enforcing Contracts in Jakarta – Measure of Quality
Answer Score
1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0
2. Small claims court 1.5
2.a. Is there a small claims court or a fast-track procedure for small claims? Yes
2.b. If yes, is self-representation allowed? Yes
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, but manual 0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
1. Time standards 1.0
1.a. Are there laws setting overall time standards for key court events in a civil case? Yes
1.b. If yes, are the time standards set for at least three court events? Yes
1.c. Are these time standards respected in more than 50% of cases? Yes
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted? No
2.b. Are adjournments limited to unforeseen and exceptional circumstances? No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) Yes 1.0
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0
5. Are there any electronic case management tools in place within the competent court for use by judges? Yes 1.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0
3. Can court fees be paid electronically within the competent court? No 0.0
4. Publication of judgments 0.5
4.a Are judgments rendered in commercial cases at all levels made available to the general public No
through publication in official gazettes, in newspapers or on the internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made Yes
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
1. Arbitration 1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No
that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
Page 101
2. Mediation/Conciliation 1.0
2.a. Is voluntary mediation or conciliation available? Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
Page 102
Enforcing Contracts - Surabaya
Standardized Case
Claim value IDR 99,711,339
Court name Surabaya District Court

Time (days) 450 581.1 589.6 120 (Singapore)
Cost (% of claim value) 57.0 47.2 21.5 0.1 (Bhutan)
Quality of judicial processes index (0-18) 8.5 8.1 11.7 None in 2018/19
Figure – Enforcing Contracts in Surabaya – Score
73.0 36.0 47.2
Time Cost Quality of judicial processes index
Figure – Enforcing Contracts in Surabaya and comparator economies – Ranking and Score
DB 2020 Enforcing Contracts Score
0 100
52.1: Surabaya
48.2: Jakarta
Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of
Page 103
Figure – Enforcing Contracts in Surabaya – Time and Cost
Time (days) Cost (% of claim value)

1200 74.0 80
Cost (% of claim value)

962 70
1000
57.0 60
Time (days)
800 47.2 50
581.1 37.9 589.6
600 496 40
425 31.0 450 420
390 30
400 21.5
16.2 16.9 20
200
10
0 0

Asia high
& income
Pacific
Page 104
Figure – Enforcing Contracts in Surabaya and comparator economies – Measure of Quality
Surabaya 2.5 2 1 3
China 3 5.5 3 5
Jakarta 2.5 3 0.5 3
Malaysia 2.5 4 2.5 4
Philippines 2.5 1.5 0 3.5
Thailand 2.5 2 1 3
0 2 4 6 8 10 12 14 16 18
Sub-Indicator Score
Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5)
Details – Enforcing Contracts in Surabaya
Indicator
Time (days) 450
Filing and service 60
Trial and judgment 120
Enforcement of judgment 270
Cost (% of claim value) 57.0
Attorney fees 35
Court fees 7
Enforcement fees 15
Page 105
Details – Enforcing Contracts in Surabaya – Measure of Quality
Answer Score
1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0
2. Small claims court 1.5
2.a. Is there a small claims court or a fast-track procedure for small claims? Yes
2.b. If yes, is self-representation allowed? Yes
3. Is pretrial attachment available? Yes 1.0
4. Are new cases assigned randomly to judges? Yes, but manual 0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0
1. Time standards 1.0
1.a. Are there laws setting overall time standards for key court events in a civil case? Yes
1.b. If yes, are the time standards set for at least three court events? Yes
1.c. Are these time standards respected in more than 50% of cases? Yes
2. Adjournments 0.0
2.a. Does the law regulate the maximum number of adjournments that can be granted? No
2.b. Are adjournments limited to unforeseen and exceptional circumstances? No
2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a.
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) No 0.0
clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?
4. Is a pretrial conference among the case management techniques used before the competent court? No 0.0
5. Are there any electronic case management tools in place within the competent court for use by judges? Yes 1.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers? No 0.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court? No 0.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court? No 0.0
3. Can court fees be paid electronically within the competent court? No 0.0
4. Publication of judgments 1.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public Yes
through publication in official gazettes, in newspapers or on the internet or court website?
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made Yes
available to the general public through publication in official gazettes, in newspapers or on the internet
or court website?
1. Arbitration 1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all its aspects?
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— No
that cannot be submitted to arbitration?
1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes
Page 106
2. Mediation/Conciliation 1.0
2.a. Is voluntary mediation or conciliation available? Yes
2.b. Are mediation, conciliation or both governed by a consolidated law or consolidated chapter or Yes
section of the applicable code of civil procedure encompassing substantially all their aspects (for
example, definition, aim and scope of application, desig
2.c. Are there financial incentives for parties to attempt mediation or conciliation (i.e., if mediation or No
conciliation is successful, a refund of court filing fees, income tax credits or the like)?
Page 107
Resolving Insolvency
Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate,
which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings.
To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with
data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more
information.
Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several
assumptions about the business and the case are used:
• Measured in calendar years
• Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel
experiences financial difficulties.
Cost required to recover debt (% of debtor’s estate) - The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD
200,000, whichever is greater.
• Measured as percentage of estate value
- The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate.
• Court fees The hotel cannot pay back the loan, but makes enough money to operate otherwise.
• Fees of insolvency administrators
In addition, Doing Business evaluates the quality of legal framework applicable to judicial
• Lawyers’ fees liquidation and reorganization proceedings and the extent to which best insolvency practices have
• Assessors’ and auctioneers’ fees been implemented in each economy covered.
• Other related fees

Outcome
• Whether business continues operating as a going concern or

business assets are sold piecemeal
Recovery rate for creditors
• Measures the cents on the dollar recovered by secured

creditors
• Outcome for the business (survival or not) determines the

maximum value that can be recovered
• Official costs of the insolvency proceedings are deducted

• Depreciation of furniture is taken into account
• Present value of debt recovered
Strength of insolvency framework index (0- 16)
• Sum of the scores of four component indices:

• Commencement of proceedings index (0-3)
• Management of debtor’s assets index (0-6)
• Reorganization proceedings index (0-3)
• Creditor participation index (0-4)
Page 108
Resolving Insolvency - Jakarta

Recovery rate (cents on the dollar) 65.1 35.5 70.2 92.9 (Norway)
Time (years) 1.1 2.6 1.7 0.4 (Ireland)
Cost (% of estate) 22.0 20.6 9.3 1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern) 1 .. .. ..
Strength of insolvency framework index (0-16) 10.5 7.0 11.9 None in 2018/19
Figure – Resolving Insolvency in Jakarta – Score
70.1 65.6
Recovery rate Strength of insolvency framework index
Figure – Resolving Insolvency in Jakarta and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
68.8: Surabaya
67.9: Jakarta
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Page 109
Figure – Resolving Insolvency in Jakarta – Time and Cost
Time (years) Cost (% of estate)

3 2.7 32.0 35
2.6
Cost (% of estate)
2.5 30
Time (years)
22.0 22.0 25
2 1.7 20.6 1.7 20.0
1.5 18.0 20
1.5
1.1 1.0 1.1 15
1 10.0 9.3
10
0.5 5
0 0

Asia high
& income
Pacific
Page 110
Figure – Resolving Insolvency in Jakarta and comparator economies – Measure of Quality
Jakarta 5 3 2 0.5
China 6 3 2 2.5
Malaysia 2 3 2 0.5
Philippines 5.5 2.5 3 3
Surabaya 5 3 2 0.5
Thailand 5 2.5 2 3
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the
strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”
Figure – Resolving Insolvency in Jakarta and comparator economies – Recovery Rate

Recovery rate(cents on the dollar)
90
81.0
80
70.1
70 65.1 66.9
60
50
40 36.9 35.5
30
21.1
20
10
0
Jakarta China Malaysia Philippines Thailand Surabaya East Asia & Pacific
Page 111
Details – Resolving Insolvency in Jakarta
Indicator Answer Score
Proceeding reorganization BizBank would initiate foreclosure after Mirage's default on payment. Under Part Six of Law No. 37 of 2004 regarding
Bankruptcy and Suspension of Obligation for Debt Payment, Mirage would petition to the Commercial Court for a
suspension of payments. The foreclosure procedure then gets converted to reorganization. Suspension of payment
cases are heard before the Commercial Court.
Outcome going concern After creditors approve the plan, it is possible to sell Mirage as going concern, because the prospect is good.
Time (in years) 1.1 BizBank would initiate foreclosure after Mirage's default on payment. According to Part Six of Law No. 37 of 2004
regarding Bankruptcy and Suspension of Obligation for Debt Payment, Mirage would petition to the Commercial Court
for a suspension of payments. The foreclosure procedure then gets converted to reorganization. Suspension of
payment cases are heard before the Commercial Court. It takes about 2 months from the moment the case is filed until
the first hearing. The Commercial Court must then grant a provisional moratorium, and appoint a supervisory judge
and an administrator or receiver to assist the debtor in managing its estate. The provisional moratorium period is 90
days, but the permanent moratorium, which can be granted as an extension, is 270 days (counted from the decision
on the temporary suspension). During this time, Mirage must propose a composition plan and creditors will decide
whether to accept the plan, reject it or proceed to a permanent moratorium. BizBank is likely to ratify the composition
plan if the terms are beneficial because it will recover more than through foreclosure. The total process, since Mirage
defaults up to the adoption of the plan is 13 months.
Cost (% of estate) 22.0 The costs associated with the case would amount to approximately 22% of the value of the debtor's estate. Cost
incurred during the entire insolvency process mainly include court or government agency fees (1%), attorneys’ fees (up
to 10%), administrator’s fees (up to 7.5%), fees of accountants, assessors, inspectors (up to 3%), other fees such as
announcement fees (1%).
Recovery rate 65.1

(cents on the dollar)
Page 112
Details – Resolving Insolvency in Jakarta – Measure of Quality
Answer Score
Commencement of proceedings index (0-3) 3.0
What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for 1.0
both liquidation and
reorganization
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor 1.0
may file for both
liquidation and
reorganization
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (a) Debtor is 1.0
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value generally unable to
of its assets pay its debts as they
mature
Management of debtor's assets index (0-6) 5.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the Yes 1.0
debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0
insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors
Reorganization proceedings index (0-3) 0.5
Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0
what they would obtain in a liquidation?
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0
separately and are creditors in the same class treated equally?
Creditor participation index (0-4) 2.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency Yes 1.0
representative?
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0
representative?
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0
creditors' claims?
Page 113
Resolving Insolvency - Surabaya

Recovery rate (cents on the dollar) 66.9 35.5 70.2 92.9 (Norway)
Time (years) 1.1 2.6 1.7 0.4 (Ireland)
Cost (% of estate) 20.0 20.6 9.3 1.0 (Norway)
Outcome (0 as piecemeal sale and 1 as going concern) 1 .. .. ..
Strength of insolvency framework index (0-16) 10.5 7.0 11.9 None in 2018/19
Figure – Resolving Insolvency in Surabaya – Score
72.0 65.6
Recovery rate Strength of insolvency framework index
Figure – Resolving Insolvency in Surabaya and comparator economies – Ranking and Score
DB 2020 Resolving Insolvency Score
0 100
68.8: Surabaya
67.9: Jakarta
Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average
of the scores for the recovery rate and the strength of insolvency framework index.
Page 114
Figure – Resolving Insolvency in Surabaya – Time and Cost
Time (years) Cost (% of estate)

3 2.7 32.0 35
2.6
Cost (% of estate)
2.5 30
Time (years)
22.0 22.0 25
2 1.7 20.6 1.7 20.0
1.5 18.0 20
1.5
1.1 1.0 1.1 15
1 10.0 9.3
10
0.5 5
0 0

Asia high
& income
Pacific
Page 115
Figure – Resolving Insolvency in Surabaya and comparator economies – Measure of Quality
Surabaya 5 3 2 0.5
China 6 3 2 2.5
Jakarta 5 3 2 0.5
Malaysia 2 3 2 0.5
Philippines 5.5 2.5 3 3
Thailand 5 2.5 2 3
0 2 4 6 8 10 12 14 16
Sub-Indicator Score
Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3)
Figure – Resolving Insolvency in Surabaya and comparator economies – Recovery Rate

Recovery rate(cents on the dollar)
90
81.0
80
70.1
70 66.9 65.1
60
50
40 36.9 35.5
30
21.1
20
10
0
Surabaya China Malaysia Philippines Thailand Jakarta East Asia & Pacific
Page 116
Details – Resolving Insolvency in Surabaya
Indicator Answer Score
Proceeding reorganization BizBank would initiate foreclosure after Mirage's default on payment. Under Part Six of Law No. 37 of 2004 regarding
Bankruptcy and Suspension of Obligation for Debt Payment, Mirage would petition to the Commercial Court for a
suspension of payments. The foreclosure procedure then gets converted to reorganization. Suspension of payment
cases are heard before the Commercial Court.
Outcome going concern After creditors approve the plan, it is possible to sell Mirage as going concern, because the prospect is good.
Time (in years) 1.1 BizBank would initiate foreclosure after Mirage's default on payment. According to Part Six of Law No. 37 of 2004
regarding Bankruptcy and Suspension of Obligation for Debt Payment, Mirage would petition to the Commercial Court
for a suspension of payments. The foreclosure procedure then gets converted to reorganization. Suspension of
payment cases are heard before the Commercial Court. It takes about 2 months from the moment the case is filed until
the first hearing. The Commercial Court must then grant a provisional moratorium, and appoint a supervisory judge
and an administrator or receiver to assist the debtor in managing its estate. The provisional moratorium period is 90
days, but the permanent moratorium, which can be granted as an extension, is 270 days (counted from the decision
on the temporary suspension). During this time, Mirage must propose a composition plan and creditors will decide
whether to accept the plan, reject it or proceed to a permanent moratorium. BizBank is likely to ratify the composition
plan if the terms are beneficial because it will recover more than through foreclosure. The total process, since Mirage
defaults up to the adoption of the plan is 13 months.
Cost (% of estate) 20.0 The costs associated with the case would amount to approximately 20% of the value of the debtor's estate. Cost
incurred during the entire insolvency process mainly include court or government agency fees (1%), attorneys’ fees (up
to 8%), administrator’s fees (up to 7.5%), fees of accountants, assessors, inspectors (up to 3%), other fees such as
announcement fees (1%).
Recovery rate 66.9

(cents on the dollar)
Page 117
Details – Resolving Insolvency in Surabaya – Measure of Quality
Answer Score
Commencement of proceedings index (0-3) 3.0
What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for 1.0
both liquidation and
reorganization
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (a) Yes, a creditor 1.0
may file for both
liquidation and
reorganization
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) (a) Debtor is 1.0
Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value generally unable to
of its assets pay its debts as they
mature
Management of debtor's assets index (0-6) 5.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the Yes 1.0
debtor?
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of Yes 1.0
insolvency proceedings?
Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0
assigned to post-
commencement
creditors
Reorganization proceedings index (0-3) 0.5
Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as No 0.0
what they would obtain in a liquidation?
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote No 0.0
separately and are creditors in the same class treated equally?
Creditor participation index (0-4) 2.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency Yes 1.0
representative?
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? No 0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency No 0.0
representative?
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting Yes 1.0
creditors' claims?
Page 118
Employing Workers
Doing Business presents detailed data for the employing workers indicators on the Doing Business website (http://www.doingbusiness.org). The study does not present
rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.
The most recent round of data collection was completed in May 2019. See the methodology for more information.
Hiring To make the data comparable across economies, several assumptions about the worker and the
(i) whether fixed-term contracts are prohibited for permanent business are used.
tasks; (ii) maximum cumulative duration of fixed-term contracts;
(iii) length of the maximum probationary period; (iv) minimum The worker:
wage;(v) ratio of minimum wage to the average value added per - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
worker. - Is a full-time employee.
- Is not a member of the labor union, unless membership is mandatory.
Working hours
(i) maximum number of working days allowed per week; (ii) The business:
premiums for work: at night, on a weekly rest day and overtime; - Is a limited liability company (or the equivalent in the economy).
(iii) whether there are restrictions on work at night, work on a - Operates a supermarket or grocery store in the economy’s largest business city. For 11
weekly rest day and for overtime work; (iv) length of paid annual economies the data are also collected for the second largest business city.
leave. - Has 60 employees.
- Is subject to collective bargaining agreements if such agreements cover more than 50% of the
Redundancy rules food retail sector and they apply even to firms that are not party to them.
(i) whether redundancy can be basis for terminating workers; (ii) - Abides by every law and regulation but does not grant workers more benefits than those
whether employer needs to notify and/or get approval from third mandated by law, regulation or (if applicable) collective bargaining agreements.
party to terminate 1 redundant worker and a group of 9 redundant
workers; (iii) whether the law requires employer to reassign or
retrain a worker before making worker redundant; (iv) whether
priority rules apply for redundancies and reemployment.
Redundancy cost
(i) notice period for redundancy dismissal; (ii) severance
payments, and (iii) penalties due when terminating a redundant
worker. Data on the availability of unemployment protection for a
worker with one year of employment is also collected.
Page 119
Employing Workers - Jakarta
Details – Employing Workers in Jakarta
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? Yes
Maximum length of a single fixed-term contract (months) 24.0
Maximum length of fixed-term contracts, including renewals (months) 36.0
Minimum wage applicable to the worker assumed in the case study (US$/month) 281.4
Ratio of minimum wage to value added per worker 0.6
Maximum length of probationary period (months) 3.0
Working hours
Standard workday 8.0
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 0.0
Premium for overtime work (% of hourly pay) 75.0
Restrictions on night work? No
Restrictions on weekly holiday? No
Restrictions on overtime work? No
Paid annual leave for a worker with 1 year of tenure (working days) 12.0
Paid annual leave for a worker with 5 years of tenure (working days) 12.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 12.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party notification if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? Yes
Third-party notification if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? Yes
Retraining or reassignment obligation before redundancy? Yes
Priority rules for redundancies? No
Priority rules for reemployment? No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0
Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 0.0
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 0.0
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 17.3
Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 60.7
Page 120
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 57.8
Unemployment protection after one year of employment? No
Page 121
Employing Workers - Surabaya
Details – Employing Workers in Surabaya
Answer
Hiring
Fixed-term contracts prohibited for permanent tasks? Yes
Maximum length of a single fixed-term contract (months) 24.0
Maximum length of fixed-term contracts, including renewals (months) 36.0
Minimum wage applicable to the worker assumed in the case study (US$/month) 276.5
Ratio of minimum wage to value added per worker 0.6
Maximum length of probationary period (months) 3.0
Working hours
Standard workday 8.0
Maximum number of working days per week 6.0
Premium for night work (% of hourly pay) 0.0
Premium for work on weekly rest day (% of hourly pay) 0.0
Premium for overtime work (% of hourly pay) 75.0
Restrictions on night work? No
Restrictions on weekly holiday? No
Restrictions on overtime work? No
Paid annual leave for a worker with 1 year of tenure (working days) 12.0
Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 12.0
Redundancy rules
Dismissal due to redundancy allowed by law? Yes
Third-party notification if one worker is dismissed? Yes
Third-party approval if one worker is dismissed? Yes
Third-party notification if nine workers are dismissed? Yes
Third-party approval if nine workers are dismissed? Yes
Retraining or reassignment obligation before redundancy? Yes
Priority rules for redundancies? No
Priority rules for reemployment? No
Redundancy cost
Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 0.0
Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 0.0
Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 17.3
Page 122
Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 57.8
Unemployment protection after one year of employment? No
Page 123
Business Reforms in Indonesia
From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by
Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008.
=Doing Business reform making it easier to do business. = Change making it more difficult to do business.
DB2020
Starting a Business: Indonesia (Jakarta) made starting a business easier by introducing an online platform for business licensing and replacing hard copies with
electronic certificates.
Getting Electricity: Indonesia (Surabaya) improved the reliability of power supply following renovations to and enhanced maintenance of its electrical grid. Indonesia
(Surabaya) also made obtaining new electrical connections faster thanks to higher generation capacity.
Paying Taxes: Indonesia made paying taxes easier by introducing an online filing and payment system for the major taxes. This reform applies to both Jakarta and
Surabaya.
Trading across Borders: Indonesia made trading across borders easier by improving the online processing of export customs declarations. This reform applies to both
Jakarta and Surabaya.
Enforcing Contracts: Indonesia made enforcing contracts easier by introducing an electronic case management system for judges. This reform applies to both Jakarta
and Surabaya.
DB2019
Starting a Business: Indonesia made starting a business easier by combining different social security registrations and by reducing notarization fees in both Jakarta
and Surabaya. Also, different registrations were combined at the one-stop shop in Surabaya.
Registering Property: Indonesia made registering property easier by reducing the time to solve land disputes at the First Instance Court and enhanced the
transparency of the land registry. This reform applies to both Jakarta and Surabaya.
Getting Credit: Indonesia improved access to credit information by distributing data from retailers and utility companies. This reform applies to both Jakarta and
Surabaya.
DB2018
Starting a Business: Indonesia made starting a business less costly by reducing the start-up fees for limited liability companies. This reform applies to both Jakarta
and Surabaya.
Getting Electricity: Indonesia made getting electricity less costly by reducing connection and internal wiring certification fees. In Jakarta, getting electricity was also
made easier after the utility streamlined the processing of new connection applications.
Registering Property: Indonesia made registering property easier by reducing the transfer tax. This reform applies to Jakarta and Surabaya.
Getting Credit: Indonesia improved access to credit information by launching a new credit bureau. This reform applies to both Jakarta and Surabaya.
Protecting Minority Investors: Indonesia strengthened minority investor protections by increasing shareholder rights and role in major corporate decisions and
requiring greater corporate transparency. This reform applies to both Jakarta and Surabaya.
Paying Taxes: Indonesia made paying taxes easier by promoting the online filing of taxes and by lowering the rate for capital gains tax. Indonesia also increased the
ceiling used in the calculation of health care contribution. These reforms apply to both Jakarta and Surabaya.
Trading across Borders: Indonesia made importing faster by introducing an electronic single billing system. This reform applies to both Jakarta and Surabaya.
Page 124
DB2017
Starting a Business: Indonesia made starting a business easier by creating a single form to apply for the company registration certificate and trading license. This
reform applies to Jakarta. Indonesia also made starting a business easier by abolishing the minimum capital requirement for small and medium-size enterprises and by
encouraging the use of an online system to reserve company names. This reform applies to both Jakarta and Surabaya.
Getting Electricity: Indonesia made the process for getting an electricity connection faster by reducing the time for contractors to perform external work thanks to an
increase in the stock of electrical material supplied by the utility. In Surabaya, getting electricity was also made easier after the utility streamlined the process for new
connection requests.
Registering Property: Indonesia made it easier to register property by digitizing its cadastral records and setting up a geographic information system.
Getting Credit: Indonesia strengthened access to credit by establishing a modern collateral registry.
Paying Taxes: Indonesia made paying taxes easier by introducing an online system for filing and paying health contributions. Indonesia also made paying taxes more
costly by levying a new pension contribution at a rate of 2% paid by employers. These reforms apply to both Jakarta and Surabaya.
Trading across Borders: Indonesia made exporting and importing easier by improving the customs services and document submission functions of the Indonesia
National Single Window.
Enforcing Contracts: Indonesia made enforcing contracts easier by introducing a dedicated procedure for small claims that allows for parties’ self-representation.This
reform applies to both Jakarta and Surabaya.
DB2016
Starting a Business: Indonesia made starting a business in Jakarta easier by reducing the time needed to register with the Ministry of Manpower.
Getting Credit: Indonesia improved access to credit by enabling searches of the collateral registry by the debtor’s name. This reform applies to both Jakarta and
Surabaya.
Paying Taxes: Indonesia made paying taxes easier and less costly for companies by introducing an online system for paying social security contributions and by
reducing both the rate paid by employers and the ceiling for the contributions. This reform applies to both Jakarta and Surabaya.
DB2015
Starting a Business: Indonesia made starting a business easier by allowing the Ministry of Law and Human Rights to electronically issue the approval letter for the
deed of establishment. This reform applies to both Jakarta and Surabaya.
Getting Electricity: In Indonesia the electricity company in Jakarta made getting electricity easier by eliminating the need for electrical contractors to obtain multiple
certificates guaranteeing the safety of internal installations—though. The utility in Jakarta and Surabaya also increased the cost by introducing a security deposit for
new connections.
Paying Taxes: Indonesia made paying taxes less costly for companies by reducing employers’ health insurance contribution rate. This reform applies to both Jakarta
and Surabaya.
Trading across Borders: In Indonesia trading across borders became more difficult because of insufficient infrastructure at the Tanjung Priok Port Jakarta. This change
applies to both Jakarta and Surabaya.
DB2014
Getting Credit: Indonesia improved its credit information system through a new regulation setting up a legal framework for establishing credit bureaus.
DB2013
Getting Electricity: Indonesia made getting electricity easier by eliminating the requirement for new customers applying for an electricity connection to show a
neighbor’s electricity bill as a way to help determine their address.
DB2012
Starting a Business: Indonesia made starting a business easier by introducing a simplified application process allowing an applicant to simultaneously obtain both a
general trading license and a business registration certificate.
Getting Electricity: Indonesia made getting electricity more difficult by increasing connection fees.
DB2011
Starting a Business: Indonesia eased business start-up by reducing the cost for company name clearance and reservation and the time required to reserve the name
and approve the deed of incorporation.
Paying Taxes: Indonesia reduced its corporate income tax rate.
Trading across Borders: Indonesia reduced the time to export by launching a single-window service.
Page 125
DB2010
Starting a Business: Indonesia made starting a business easier by introducing online service, eliminating certain licenses, increasing efficiency at the registry and
reducing several fees.
Registering Property: Indonesia made registering property easier by introducing time limits for procedures at the land registry.
Protecting Minority Investors: Indonesia strengthened investor protections by increasing disclosure requirements for related-party transactions.
Paying Taxes: Indonesia made paying taxes less costly for companies by reducing the top corporate income tax rate.
DB2009
Starting a Business: Indonesia made starting a business more difficult by more than doubling the minimum capital requirement.
Getting Credit: Indonesia improved access to credit information by guaranteeing borrowers’ right to inspect their own data in the public credit registry.
DB2008
Starting a Business: Indonesia made starting a business more difficult by increasing the paid-in minimum capital requirement.
Dealing with Construction Permits: Indonesia made dealing with construction permits easier by implementing a new building regulation that revoked earlier provisions
on the time period to complete building permits—leading to a reduction in the time to obtain a building permit.
Getting Credit: Indonesia’s public credit registry eliminated the minimum threshold for loans included in its database, improving access to credit information.
Protecting Minority Investors: Indonesia strengthened investor protections by expanding the already extensive disclosure requirements for companies listed on the
stock exchange.
Paying Taxes: Indonesia made paying taxes easier for companies by simplifying filing requirements and encouraging the use of electronic systems.
Page 126
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Doing Business 2020 Indonesia

Economy Profile of Indonesia

Getting credit Movable collateral laws and credit information systems

Employing workers Flexibility in employment regulation and redundancy cost

About Doing Business

To learn more about Doing Business please visit doingbusiness.org

Ease of Doing Business in DB RANK DB SCORE

City Covered Jakarta, Surabaya

Rankings on Doing Business topics - Indonesia

What the indicators measure Case study assumptions

Starting a Business - Jakarta

Legal form Perseroan Terbatas (PT)

Paid-in minimum capital requirement No minimum

City Covered Jakarta

Indicator Jakarta East Asia & OECD high Best Regulatory

Procedure – Men (number) 11 6.5 4.9 1 (2 Economies)

Time – Men (days) 10 25.6 9.2 0.5 (New Zealand)

Procedure – Women (number) 11 6.6 4.9 1 (2 Economies)

Time – Women (days) 10 25.7 9.2 0.5 (New Zealand)

Figure – Starting a Business in Jakarta – Score

41.2 90.5 97.2 100.0

Procedures Time Cost Paid-in min. capital

DB 2020 Starting a Business Score

94.1: China (Rank: 27)

92.4: Thailand (Rank: 47)

83.3: Malaysia (Rank: 126)

71.3: Philippines (Rank: 171)

Figure – Starting a Business in Jakarta – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

Cost (% of income per capita)

Details – Starting a Business in Jakarta – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

The company must not use a name which:

5 Make a company seal 1 day IDR 30,000

7 Apply for the Certificate of Company Domicile 2 days no charge

8 Apply for the single business number (NIB) 1 day no charge

9 Register with the Ministry of Manpower 1 day no charge

Takes place simultaneously with previous procedure.

Starting a Business - Surabaya

Legal form Perseroan Terbatas (PT)

Paid-in minimum capital requirement No minimum

City Covered Surabaya

Indicator Surabaya East Asia & OECD high Best Regulatory

Procedure – Men (number) 12 6.5 4.9 1 (2 Economies)

Time – Men (days) 22 25.6 9.2 0.5 (New Zealand)

Procedure – Women (number) 12 6.6 4.9 1 (2 Economies)

Time – Women (days) 22 25.7 9.2 0.5 (New Zealand)

Figure – Starting a Business in Surabaya – Score

35.3 78.4 97.2 100.0

Procedures Time Cost Paid-in min. capital

DB 2020 Starting a Business Score

94.1: China (Rank: 27)

92.4: Thailand (Rank: 47)

83.3: Malaysia (Rank: 126)

71.3: Philippines (Rank: 171)

Figure – Starting a Business in Surabaya – Procedure, Time and Cost

Time (days) Cost (% of income per capita)

Cost (% of income per capita)

Details – Starting a Business in Surabaya – Procedure, Time and Cost

No. Procedures Time to Complete Associated Costs

The company must not use a name which:

5 Make a company seal 1 day IDR 30,000

6 Apply for the Certificate of Company Domicile 4 days no charge